Who Pays for Title Insurance on a Home Purchase?

January 8, 2024

Our bank requests that we get the lender’s title insurance based on a review of the documents. Our real estate agent says we also have to buy an owner’s title insurance policy in addition to our down payment. But isn’t the seller supposed to provide that?


First of all, let’s clarify between the owner’s and lender’s title insurance:

  • Owner’s title insurance protects the homeowners against defects in the title that were not found during the title search.
  • Lender’s title insurance protects the lender against problems in the title that were not found during the title search.

There’s no hard rule regarding who should pay for what insurance, as each state established it individually. That said, the lender’s title insurance is typically paid by the buyer, whereas the owner’s title insurance is up for debate.

Who Pays for Title Insurance on a Home Purchase? 1

Oleksandr Rohovnin is a Content Marketer at Phonexa.com and an expert contributor to CoverExplore. His passion is digital marketing, innovative technologies, tech industries, and – above all – distilling vast amounts of complex information into engrossing narratives anyone can relate to. At CoverExplore, Oleksandr stokes passion for auto insurance and the automotive industry in general in every story he curates.

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