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Title Insurance Explained: Why You Pay at Closing
Owner vs lender title insurance, what it protects against, and why it is a one-time premium.
July 9, 20267 min readBy MyWealthForge
Key Takeaways
- 1Protects against title defects: liens, forgery, missing heirs.
- 2Lender policy required; owner policy optional but recommended.
- 3One-time premium at closing — $500–$3,500.
- 4Owner policy protects you for as long as you own the home.
Title insurance is one of the largest closing costs people do not understand — it protects against problems with the property's legal history.
Budget in our closing costs guide.
Owner vs Lender Policy
Lender policy protects the bank. Owner policy protects YOU from title claims after purchase.
Always buy owner policy — marginal cost above lender-only.
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