Title Insurance Explained: Cost, Coverage & Who Pays
Title Insurance Explained in 2026: What It Covers, Cost, Who Pays and Why Lenders Require It United States | October 24, 2026 A homebuyer finds the right property, negotiates the price and receives mortgage approval. The closing paperwork includes a charge for lender's title insurance. Another line shows optional owner's title insurance. The buyer already plans to pay for homeowners insurance and wonders why another insurance policy is necessary. The explanation lies in an important difference. Homeowners insurance addresses specified future risks, such as a fire or other covered physical damage. Title insurance deals principally with certain problems in the property's ownership history. A house can look completely normal and still carry an undiscovered lien, defective deed, recording error or another issue affecting legal title. The lender's policy protects the bank. The owner's policy protects the buyer's interest, subject to its terms. Understanding the two p...