You’re reviewing your closing costs and see a charge for title insurance. Do you need it and if you’re paying for it, does it protect you?
The answer depends on which policy is listed. A lender’s policy and an owner’s policy protect different interests. Understanding that difference helps you make an informed choice before closing.
Not sure which policy appears on your paperwork?
Ask Berkshire Title Company to walk you through it → CONTACT BERKSHIRE TITLE COMPANY!
What Does Title Insurance Protect Against?
Before closing, a title search examines records connected to the property’s ownership. The title team looks for issues that need attention, such as unpaid liens or errors in recorded documents.
Sometimes, an ownership issue comes to light after the purchase. Title insurance can help with certain covered claims tied to the property’s history. What is covered depends on the policy, including its exceptions.
Key takeaway : A title search looks for problems before closing. Title insurance addresses certain covered problems discovered later.
If My Lender Requires Title Insurance, Am I Protected Too?
Not by the lender’s policy.
Most mortgage lenders require a lender’s title insurance policy to protect their interest in the property. An owner’s title insurance policy is separate and protects the insured homeowner’s interest.
Buyers are often surprised to learn they can pay for the lender’s policy without being covered by it.
What to ask : “Does my quote include an owner’s policy, a lender’s policy, or both?”
Is Owner’s Title Insurance Required?
An owner’s policy is generally optional. Whether to purchase one is your decision.
To make that choice, ask what the proposed policy covers and whether it lists any exceptions you should understand. If you’re buying with cash, there may be no lender requiring its own policy, but you can still ask about coverage for your ownership interest.
Key takeaway : The lender’s requirement and your choice about an owner’s policy are two different things.
How Much Does Title Insurance Cost, and Who Pays?
There isn’t one price or payment arrangement for every closing. Costs and who pays them can depend on the transaction, the purchase agreement, and local practice.
Ask for an itemized quote so you can see :
- The lender’s policy, if applicable
- The owner’s policy, if selected
- The title search and other title or closing services
If a charge on your Loan Estimate or Closing Disclosure is unclear, ask your lender and title company to explain it before you sign.
Every closing is different.
For help understanding the title charges in yours, contact Berkshire → CONTACT BERKSHIRE TITLE COMPANY!
Can I Choose My Title Company?
Buyers can often shop for title services. If someone has already suggested a provider, you can ask who selected them, what their quote includes, and which services you may choose.
Raise the question early so there is time to coordinate with your lender and closing team. In New Jersey, Florida, New York, Michigan, and Montana, the details of your transaction matter more than a general example from another state.
You Have a Choice. The first step is knowing what you’re being asked to choose.
What Should I Ask Before Closing?
You don’t need to become a title expert. Start with these questions :
- Which policy protects my interest as the buyer?
- What did the title search find?
- Are there exceptions in the proposed owner’s policy?
- What services are included in my quote?
- Who is paying each title charge?
Clear answers can help you review your paperwork with more confidence.
Final Thoughts: Understand the Policy Before You Decide
If you’re buying with a mortgage, your lender will usually require a policy that protects the lender. An owner’s policy is a separate choice about protecting your interest in the home.
At Berkshire Title Company, we believe buyers should understand their options before closing, not feel rushed through unfamiliar paperwork.
Have a question about title insurance or your upcoming closing?
Contact Berkshire Title Company for a clear explanation → CONTACT BERKSHIRE TITLE COMPANY
