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Homeowners Guide: What to Look For in Title Insurance

Homeowners Guide: What to Look For in Title Insurance

Posted by Heartland on 5th Dec 2022

You're close to getting the keys to your new dream house, and you can't wait to make it happen at the closing table. Given the current market conditions, you're fortunate to be in this position.

Research shows that first-time homebuyers comprised only 26% of homebuyers in June 2021 -- a 34% drop from the previous year.

In addition to purchasing a home, though, you'll also need to buy title insurance. Fortunately, we've compiled this homeowners guide on why you need title insurance and what to look for in title insurance.

Let's jump in!


When you purchase a house, your title company will look through public records to make sure that your new home is clear and free of ownership disputes and liens, like contractor bills or a HELOC. This process is necessary to confirm that it is within the right of the seller to sell their home.

The title search process typically goes smoothly. However, title insurance may come in handy if a dispute arises.

For this reason, the title insurance you purchase should cover a wide variety of underlying home title problems that your title company could have missed when you were buying your home.

These problems might include an undocumented easement or even conflicting or inconsistent wills. They may also range from filing errors to back taxes and even title forgeries.


As you explore title insurance policies, you'll come across both owner policies and lender policies.

If you are financing your house purchase, your lender, a bank, will require you to purchase an owner's policy. This policy will protect the bank against any title claim that may put the institution's stake in the house at risk.

You will likely pay for your lender's insurance as one of your closing costs.

An owner policy, on the other hand, is optional. However, you may want to invest in one because it will protect you from any claim against the title of the home that predates your property purchase.

In this situation, the title insurance company would cover the cost of any legal fees required to resolve title disputes or claims that crop up after your closing.

During a home purchase, the seller may offer to purchase title insurance for the buyer as part of the negotiation process.


Title insurance may range from a few hundred to a few thousand dollars, depending on the provider.

A reputable title insurance company will present you with a policy option that adequately meets your needs. They won't require you to pay more than necessary. In fact, with the right company, you could easily save hundreds of dollars compared with using another company.


As mentioned earlier in this homeowners guide, title insurance can help to protect you financially for the length of time you plan to own your home. With this type of insurance, you won't have to take on the monetary burden of covering a code violation fine, an unpaid property tax, or an outstanding lien after you've purchased your property.

At Heartland Abstract, we take pride in helping our clients to choose the right title insurance for their needs. Get in touch with us to learn more about title insurance and purchase coverage today.