4 min read Nov 11, 2022

Who Pays for Title Insurance?

Ways to Save on 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.

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.

StateWho paysAverage Cost of Insurance
AlabamaSeller$1.100 – $1,500
AlaskaBuyer $1,300- $1,800
ArizonaSeller$1,000 – $2,000
ArkansasBuyer$900 – $1,500
CaliforniaBuyer$1,000 – $2,500
ColoradoBuyer/Seller$500 – $2,500
ConnecticutBuyer/Seller$1,000 – $2,000
DelawareBuyer/Seller$800 – $1,200
FloridaBuyer/Seller$1,000 – $2,000
GeorgiaBuyer/Seller$1,000 – $2,500
HawaiiBuyer$1,000 – $1,500
IdahoBuyer/Seller$750 – $1,500
IllinoisBuyer/Seller$1,000 – $2,500
IndianaBuyer/Seller$1,000 – $1,500
IowaBuyer/Seller$900 – $1,200
KansasBuyer/Seller$1,000 – $1,500
KentuckyBuyer/Seller$1,000 – $1,500
LouisianaBuyer/Seller$1,000 – $2,500
MaineBuyer/Seller$900 – $1,500
MarylandBuyer/Seller$1,100 – $2,200
MassachusettsBuyer/Seller$1,000 – $2,000
MichiganBuyer/Seller$800 – $1,200
MinnesotaBuyer/Seller$1,000 – $2,500
MississippiSeller$1,000 – $2,000
MissouriBuyer/Seller$800 – $1,500
MontanaBuyer/Seller$1,000 – $2,000
NebraskaBuyer/Seller$1,000 – $1,500
NevadaBuyer/Seller$1,000 – $2,500
New HampshireBuyer/Seller$1,000 – $2,000
New JerseyBuyer/Seller$1,100 – $2,500
New MexicoBuyer/Seller$800 – $1,500
New YorkBuyer/Seller$1,000 – $2,500
North CarolinaBuyer/Seller$1,000 – $2,000
North DakotaBuyer/Seller$900 – $1,200
OhioBuyer/Seller$1,000 – $2,000
OklahomaBuyer/Seller$1,000 – $2,000
OregonBuyer/Seller$1,000 – $2,000
PennsylvaniaBuyer/Seller$1,000 – $2,500
Rhode IslandBuyer/Seller$900 – $1,200
South CarolinaBuyer/Seller$900 – $1,500
South DakotaBuyer/Seller$1,000 – $1,500
TennesseeBuyer/Seller$900 – $2,000
TexasBuyer/Seller$1,000 – $3,000
UtahBuyer/Seller$800 – $1,500
VermontBuyer/Seller$900 – $1,500
VirginiaBuyer/Seller$800 – $1,500
WashingtonBuyer/Seller$500 – $2,000
West VirginiaBuyer/Seller$900 – $1,200
WisconsinBuyer/Seller$1,000 – $2,000
WyomingBuyer/Seller$900 – $1,500
District of ColumbiaBuyer/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.

Frequently Asked Questions

Do I need title insurance?

Yes. You will need to buy a lender's title insurance policy if you take out a loan to purchase your home. This policy will protect the lender's interests if you face a dispute in property ownership. On the other hand, an owner's title insurance policy, though optional, will provide you with additional security.

Do I need title insurance if I pay cash?

No. If you pay cash for your home, you don't have to buy a lender's title insurance policy. However, you should still invest in a homeowner's title policy to protect your home from situations like forgery, liens, encroachment, errors in deeds, etc. In such cases, the title company will either represent you in the lawsuit or reimburse the amount to the complainant.

How long is title insurance good for?

Owner's title insurance is valid for as long as you or your heirs own the property. In the case of warranty titles made when selling the house, the policy's coverage may last forever. A lender's title insurance is issued for the loan amount given to the buyer. So, as you pay back the debt, the insurer's liability also decreases.

How Much is Title Insurance Near You

Find out how much title insurance may cost in your state and city:

RegionStates/CitiesHow Much is Title Insurance Near Me
NortheastStatesHow Much is Title Insurance in Connecticut | How Much is Title Insurance in Maine | How Much is Title Insurance in Massachusetts | How Much is Title Insurance in New Hampshire | How Much is Title Insurance in New Jersey | How Much is Title Insurance in New York | How Much is Title Insurance in Pennsylvania | How Much is Title Insurance in Rhode Island | How Much is Title Insurance in Vermont
NortheastKey CitiesHow Much is Title Insurance in Boston, MA | How Much is Title Insurance in Philadelphia, PA | How Much is Title Insurance in New York City, New York
MidwestStatesHow Much Is Title Insurance in Illinois | How Much Is Title Insurance in Indiana | How Much Is Title Insurance in Iowa | How Much Is Title Insurance in Kansas | How Much is Title Insurance in Michigan | How Much is Title Insurance in Minnesota | How Much Is Title Insurance in Missouri | How Much Is Title Insurance in Nebraska | How Much Is Title Insurance in North Dakota | How Much is Title Insurance in Ohio | How Much is Title Insurance in South Dakota | How Much is Title Insurance in Wisconsin
MidwestKey CitiesHow Much is Title Insurance in Detroit, MI | How Much is Title Insurance in Chicago, IL | How Much is Title Insurance in Milwaukee, WI | How Much is Title Insurance in Madison, WI | How Much is Title Insurance in Cincinnati, OH | How Much is Title Insurance in Minneapolis, MN
SouthStatesHow Much is Title Insurance in Alabama | How Much Is Title Insurance in Arkansas | How Much Is Title Insurance in Delaware | How Much Is Title Insurance in Florida | How Much Is Title Insurance in Georgia | How Much Is Title Insurance in Kentucky | How Much Is Title Insurance in Louisiana | How Much Is Title Insurance in Maryland | How Much Is Title Insurance in Mississippi | How Much Is Title Insurance in North Carolina | How Much is Title Insurance in Oklahoma | How Much is Title Insurance in South Carolina | How Much Is Title Insurance in Tennessee | How Much Is Title Insurance in Texas | How Much Is Title Insurance in Virginia | How Much Is Title Insurance in Washington D.C. | How Much is Title Insurance in West Virginia
SouthKey CitiesHow Much is Title Insurance in Austin, TX | How Much is Title Insurance in Atlanta, GA | How Much is Title Insurance in Miami, FL | How Much is Title Insurance in Raleigh, NC | How Much is Title Insurance in Naples, FL | How Much is Title Insurance in New Orleans, LA | How Much is Title Insurance in Nashville, TN | How Much is Title Insurance in Houston, TX | How Much is Title Insurance in Dallas, TX | How Much is Title Insurance in Baltimore, MD | How Much is Title Insurance in Charlotte, NC | How Much is Title Insurance in Columbia, SC | How Much is Title Insurance in Tampa, FL | How Much is Title Insurance in Tulsa, OK
WestStatesHow Much is Title Insurance in Alaska | How Much is Title Insurance in Arizona | How Much is Title Insurance in California | How Much is Title Insurance in Colorado | How Much is Title Insurance in Hawaii | How Much is Title Insurance in Idaho | How Much is Title Insurance in Montana | How Much is Title Insurance in Nevada | How Much is Title Insurance in New Mexico | How Much is Title Insurance in Oregon | How Much is Title Insurance in Utah | How Much is Title Insurance in Washington | How Much is Title Insurance in Wyoming
WestKey CitiesHow Much is Title Insurance in Los Angeles, CA | How Much is Title Insurance in Fresno, CA | How Much is Title Insurance in San Diego, CA | How Much is Title Insurance in San Francisco, CA | How Much is Title Insurance in Palm Springs, CA | How Much is Title Insurance in Denver, CO | How Much is Title Insurance in Bakersfield, CA | How Much is Title Insurance in Salt Lake City, UT | How Much is Title Insurance in Portland, OR | How Much is Title Insurance in Colorado Springs, CO | How Much is Title Insurance in Phoenix, AZ | How Much is Title Insurance in Albuquerque, NM
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