Title Insurance FAQs: Everything You Should Know


Most people only purchase title insurance a couple of times in their life. So it’s not at all unusual for customers to have questions about this. We believe that all title service customers deserve to have a thorough understanding of what they’re buying and why it is important. As such, we are always happy to answer our customers’ questions about title insurance. Below, you’ll find some of the most common questions we receive — along with their answers.

What are the two types of title insurance?

The first type of title insurance is owner’s title insurance, which protects your interest in the home as its owner. The second type is lender’s title insurance, which protects the bank that holds your mortgage. Lender’s title insurance is required in most cases. Owner’s title insurance is not always required, but it is highly recommended. The best title insurance companies will talk with you about your risk and help you decide whether an owner’s policy is needed.

Do you need owner’s title insurance and homeowners insurance?

Sometimes customers assume that if they have homeowners insurance, they don’t need owner’s title insurance. However, both types of insurance are important because they cover different risks.

Homeowners insurance applies to your home and physical property.  The owner’s title insurance protects the deed to your property and your actual ownership of the property. If any liens against the property or other defects in the deed were to be discovered after closing, title insurance would protect your ownership of the home. It would also pay for any fees or costs related to the discovery.

Do you need title insurance when you refinance?

When you refinance a mortgage, you do still need a lender’s title insurance policy. This policy protects the bank from any unknown liens or judgments against the property.

Do you need title insurance on new construction?

In most cases, you should still purchase title insurance when buying new construction. Even though the building is new, the land is not. The land will have had at least one owner before you. In this case, title insurance will protect you and the lender against any potential defects in the title for the land.

How do you pay for title insurance?

Title insurance is typically paid for during closing. If you close with a title company in Pennsylvania, the fee for title insurance is often wrapped up in a closing fee that also includes the title search and the settlement fee. The fee for title insurance is a one-time charge.

Hopefully, these questions and answers have cleared up some of the queries you had about title services. If you’re looking for a title company and an escrow agency , contact Heritage Land Transfer. With more than 30 years of experience, our award-winning team of professionals always put the clients’ needs first. We partner with industry leaders and employ our own team of in-house attorneys to ensure a smooth, worry-free closing process.