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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:


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