Get the Facts on Title Insurance
💡 Quick Summary Title Insurance protects your new home from hidden issues like old liens, unpaid taxes, or property disputes. An Owner's Policy covers you as long as you own the property—unlike a Lender Policy, which only protects the bank.
What is Owner's Title Insurance
Owner’s title insurance is a smart way to protect yourself from hidden issues with your home’s title. Things like old liens, unpaid taxes, or ownership disputes can pop up after you’ve already bought the property—and title insurance helps make sure you’re covered if they do.
An Owner’s Policy is a one-time fee paid at closing and it protects you (and your heirs) for as long as you own the home.
In Pennsylvania, it’s optional and usually paid for by the buyer. It's different from a lender’s policy, which only protects the bank—not you.
What does Owner's Title Insurance Protect Against
Even with a good title search, some problems just don’t show up right away. Owner’s title insurance steps in if something goes wrong later. It can help cover:
- Unpaid mortgages or judgments from past owners
- Mistakes in public records or document fraud
- Surprise heirs showing up and claiming ownership
- Unpaid property, inheritance, or municipal taxes
If something like this happens and it’s covered, the policy helps with legal costs and financial losses tied to defending your ownership.
How Much Does Title Insurance Cost
The cost depends on your level of coverage, the home’s purchase price, and the loan amount. The premium is paid just once—when you close.
Levels of Coverage
There are two levels of coverage available, standard vs enhanced
- Standard Policy – Covers common title issues.
- Enhanced Policy – Adds extra coverage for things like zoning violations, building permit problems, or some future issues such as a fraudulent deed transfer post-closing.
The Cost
The cost can be easily determined with our title insurance calculator. From the results page, you can toggle between Standard and Enhanced to see the difference in cost for the two levels of coverage.
Enhanced vs Standard
The Enhanced Policy usually costs about 10% more than the Standard Policy, and before you go for it, keep this in mind:
- It comes with some limitations and deductibles
- It only insures against mechanic’s liens on “new construction” if approved by an underwriter.
- Most lenders don’t require the Enhanced coverage
- Roughly 85% of the added premium goes to the person selling it to you
So definitely take a look at what the extra coverage actually includes—and whether it’s worth it for your situation.
Have Questions?
If you’re not sure which policy is right for you, or you just want honest advice from someone who deals with this every day, reach out to us. We’ll give you a quick, straightforward answer—no pressure.