Auto, life, or health insurance coverage protects against potential future events and is paid for with monthly or annual premiums. Title insurance is purchased with a one-time premium that is on average 0.05% of the home’s purchase price. Unless you decide later to add more coverage, you pay for title insurance only once.

Using the national average cost of a Homeowner’s Title Insurance policy, if you live in your home for five years the annual cost for your title insurance policy would be less than $200 a year. That’s pennies on the dollar. By comparison, the national average cost of a homeowner’s insurance policy is over $700 per year, which is paid every every year.

Depending on local practices and state law where the property is located, you may pay an additional premium for an owner’s policy or you may pay a simultaneous issue charge – usually a smaller amount – for the separate lender coverage. You may even split settlement costs with the seller for the lender or owner’s policy.

A Lender’s title insurance policy lasts until the loan is paid off. Owner’s title insurance lasts as long as you, the policyholder or your heirs have an interest in the insured property. Your one time premium payment gives you coverage that lasts as long as you or your heirs own the land. Depending on your policy provisions, it also may provide warrantor’s coverage after you no longer own the property. Policy language has changed over time, so read the continuation of coverage provisions in our title insurance policy guide.

Nearly half of all real estate transactions encounter issues and defects in title. Because of this, if you take out a loan from a mortgage lender to buy a home you are required to purchase a Lender’s Title Insurance Policy. This policy protects the lender from known or unknown defects at the time of the sale and increases their willingness to make mortgage money available in distant locales where they know little about the market.

Millions of homebuyers enjoy the confidence and peace of mind that Homeowner’s Title Insurance affords them. Unlike a Lender’s Title Policy, homebuyers have the option of choosing not to purchase title insurance.

You pay for title insurance only once, when you buy the policy, unless you decide later to add more coverage. Keep your policy, even if you transfer your title or sell the property. Coverage lasts as long as you or your heirs own the land, and it may last forever for any title warranties made when you sell the property.

Yes, but you would have to pay for another title search. Since you paid for a title search prior to buying your home for the purpose of issuing the lender’s title insurance policy, you would save this cost by purchasing your title insurance policy when you buy your home.