Title insurance protects against someone showing up after closing and claiming the house was theirs. There's a lender's policy (required) and an owner's policy (optional but usually right). Here's what each does and what to negotiate.
Required by every lender on every loan. Protects the LENDER if a title defect surfaces — boundary dispute, unknown lien, fraudulent prior deed. Cost is a one-time premium at closing, typically 0.4–0.7% of loan amount. Required. Non-negotiable on whether to buy.
Optional. Protects YOU as the buyer. Same kind of defects, but the payout goes to you instead of your lender. One-time premium, typically 0.3–0.6% of purchase price. Most buyers should buy it. Lasts as long as you own the home.
It's a one-time premium for permanent protection. The lender's policy doesn't help YOU. Pay the extra ~$1,200 on a $300K home. The math overwhelmingly favors having it.
In some states, the buyer chooses. In others, it's negotiable. The seller's preferred title company isn't necessarily the cheapest or most thorough. Shop it.
The commitment lists exceptions — things the policy WON'T cover. Easements, restrictions, prior liens. Read it. Question what you don't understand.
Buying both policies at once usually triggers a discount of 30–50% on the second one. It's not always automatic. Ask. In writing.
We'll connect you with an LO who knows which title fees are negotiable in your state — and which ones you'll save real money on by shopping.