Who Pays for Title Insurance?

Title insurance is an important aspect of buying a property in the United States. It is a type of insurance that protects the buyer and the lender against any legal disputes that may arise over the ownership of the property.

The cost of title insurance can vary depending on the state and the type of property being purchased. In this blog, we will explore who pays for title insurance in the USA, the costs associated with it, and who pays for it in each state.

What is Title Insurance?

Title Insurance refers to a policy that safeguards the interests of both the homeowner i.e Owner’s Title Insurance as well as the lender as Lender’s Title Insurance in cases related to the title of a house. These issues may include forgery, deed errors, encroachments, liens or lawsuits, etc.

There are two major categories of Title Insurance:

1. Owner’s Title Insurance: A homeowner’s title insurance or owner’s title insurance policy protects the buyer against any property title-related issues.
2. Lender’s Title Insurance: A lender’s title insurance policy protects the mortgage lender against any property title-related issues.

Costs of Title Insurance

The cost of title insurance can vary depending on several factors such as the location, type of property, and purchase price.

The cost of title insurance is typically a one-time fee that is paid at closing. The average cost of title insurance in the United States ranges from $500 to $3,500, with an average cost of around $1,000.

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Who Pays for Title Insurance in the USA?

In the United States, the cost of title insurance is typically paid by the buyer. However, in some states, the seller may also be responsible for paying a portion of the cost. In addition, the lender may also require the buyer to purchase the lender’s title insurance to protect their investment.

The table below provides information on who pays for title insurance in each state and the average cost of title insurance in that state.

It is important to note that the information provided is a general guide and may not be applicable in all situations. It is always recommended to consult with a real estate attorney or a title insurance company.

State	Who pays	Average Cost of Insurance
Alabama	Seller	$1.100 – $1,500
Alaska	Buyer	$1,300- $1,800
Arizona	Seller	$1,000 – $2,000
Arkansas	Buyer	$900 – $1,500
California	Buyer	$1,000 – $2,500
Colorado	Buyer/Seller	$500 – $2,500
Connecticut	Buyer/Seller	$1,000 – $2,000
Delaware	Buyer/Seller	$800 – $1,200
Florida	Buyer/Seller	$1,000 – $2,000
Georgia	Buyer/Seller	$1,000 – $2,500
Hawaii	Buyer	$1,000 – $1,500
Idaho	Buyer/Seller	$750 – $1,500
Illinois	Buyer/Seller	$1,000 – $2,500
Indiana	Buyer/Seller	$1,000 – $1,500
Iowa	Buyer/Seller	$900 – $1,200
Kansas	Buyer/Seller	$1,000 – $1,500
Kentucky	Buyer/Seller	$1,000 – $1,500
Louisiana	Buyer/Seller	$1,000 – $2,500
Maine	Buyer/Seller	$900 – $1,500
Maryland	Buyer/Seller	$1,100 – $2,200
Massachusetts	Buyer/Seller	$1,000 – $2,000
Michigan	Buyer/Seller	$800 – $1,200
Minnesota	Buyer/Seller	$1,000 – $2,500
Mississippi	Seller	$1,000 – $2,000
Missouri	Buyer/Seller	$800 – $1,500
Montana	Buyer/Seller	$1,000 – $2,000
Nebraska	Buyer/Seller	$1,000 – $1,500
Nevada	Buyer/Seller	$1,000 – $2,500
New Hampshire	Buyer/Seller	$1,000 – $2,000
New Jersey	Buyer/Seller	$1,100 – $2,500
New Mexico	Buyer/Seller	$800 – $1,500
New York	Buyer/Seller	$1,000 – $2,500
North Carolina	Buyer/Seller	$1,000 – $2,000
North Dakota	Buyer/Seller	$900 – $1,200
Ohio	Buyer/Seller	$1,000 – $2,000
Oklahoma	Buyer/Seller	$1,000 – $2,000
Oregon	Buyer/Seller	$1,000 – $2,000
Pennsylvania	Buyer/Seller	$1,000 – $2,500
Rhode Island	Buyer/Seller	$900 – $1,200
South Carolina	Buyer/Seller	$900 – $1,500
South Dakota	Buyer/Seller	$1,000 – $1,500
Tennessee	Buyer/Seller	$900 – $2,000
Texas	Buyer/Seller	$1,000 – $3,000
Utah	Buyer/Seller	$800 – $1,500
Vermont	Buyer/Seller	$900 – $1,500
Virginia	Buyer/Seller	$800 – $1,500
Washington	Buyer/Seller	$500 – $2,000
West Virginia	Buyer/Seller	$900 – $1,200
Wisconsin	Buyer/Seller	$1,000 – $2,000
Wyoming	Buyer/Seller	$900 – $1,500
District of Columbia	Buyer/Seller	$1,500 – $3,500

Ways to Save on Title Insurance

Title insurance costs can cause you hundreds of dollars from the profits. However, in states where the title policies are not state-regulated, you can wiggle around and negotiate the policy costs.

» 5 Ways to Save on Title Insurance: Check out our guide in saving hundreds while shopping for Title Insurance.

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