Title insurance costs about 0.5% of the home price. For a $400,000 house, that equals $2,000. This includes the lender's policy premiums, owner's policy premiums, and title fees. However, costs can vary dramatically depending on your location and the home's sale price.
Title insurance is a one-time cost that lasts as long as you own the home.
What is title insurance?
Title insurance policies protect lenders and home buyers from title problems — including public record errors, undisclosed liens, and illegal deeds — during a property’s transfer of ownership.
If there's a title dispute during or after the sale, the title insurance company may be responsible for covering some or all of the associated costs (e.g., legal costs, the cost of the home) specified by the policy.
There are two types of title insurance policies:
- Lender's title insurance: This policy protects the mortgage lender. The lender typically requires the buyer to cover it.
- Owner's title insurance: This policy protects the homeowner and is optional. The buyer or seller may cover it, depending on the location and negotiations.
Title insurance is different than homeowner's insurance. The former doesn't cover damages to your physical home and possessions and doesn't include any personal liability coverage.
How much is title insurance?
Title insurance costs can vary, but for a typical home, expect to pay around $2,000 or more. This number is a combination of three categories of fees:
- Owner's title insurance policy premiums (~0.4%): The price of the policy that protects the homeowner.
- Lender's title insurance policy premiums (~0.1%): The price of the policy that protects the lender. This policy is typically much less expensive than the owner's policy.
- Title fees (~$1,000): The price of the work the title insurance company did to issue the policy. Typical fees include title abstract, deed preparation, and title closing fees. Costs can vary dramatically depending on where you live and the title company you choose.
Here's what these fees could look like for a $400,000 home:
| Category | Cost |
|---|---|
| Owner's title insurance premium | $1,600 |
| Lender's title insurance premium | $400 |
| Title fees | $1,000 |
| Total | $3,000 |
Title insurance costs by policy type
The cost of your owner's title insurance premiums depends on the type of policy you purchase.
Two types of owner’s title insurance policies are certified by the American Land Title Association® (ALTA), the trade association that represents the title insurance industry nationwide.
| ALTA Owner’s Policy[1] | ALTA Homeowner’s Policy[2] | |
|---|---|---|
| Cost | 0.29–0.45% | 0.40–0.50% |
| Recommended for | Vacant land or some commercial properties | Residential homes |
| Coverage* |
|
|
Buyers in some areas can choose between the ALTA Owner’s and Homeowner’s Policies, but in other locations, only one or the other may be available.
Different states make ALTA Owner’s or Homeowner's the default option. If you want more or less coverage, you’ll need to make a specific request.
The smart choice for most homeowners is the expanded coverage of the ALTA Homeowner's Policy. The extra protection is well worth the added $80–140. Remember that title insurance is a one-time cost, not an ongoing monthly home payment.
Title insurance costs by state
Title insurance costs vary greatly depending on where you live. Here's the title insurance cost for $400,000 homes in each state:
| State | Title insurance cost* | Title fees |
|---|---|---|
| Alabama | $1,425 | $0 |
| Alaska | $2,174 | 1,235 |
| Arizona | $3,136 | $1,583 |
| Arkansas | $1,135 | $0 |
| California | $2,307 | $3,273 |
| Colorado | $2,565 | $310 |
| Connecticut | $1,732 | $2,440 |
| Delaware | $2,220 | $0 |
| Florida | $2,385 | $850 |
| Georgia | $2,625 | $0 |
| Hawaii | $2,385 | $0 |
| Idaho | $1,993 | $1,497 |
| Illinois | $3,625 | $3,336 |
| Indiana | $1,451 | $1,210 |
| Iowa** | $0 | $0 |
| Kansas | $1,046 | $325 |
| Kentucky | $1,974 | $910 |
| Louisiana | $1,995 | $1,300 |
| Maine | $1,495 | $695 |
| Maryland | $2,854 | $3,397 |
| Massachusetts | $2,075 | $2,565 |
| Michigan | $3,486 | $830 |
| Minnesota | $1,489 | $1,690 |
| Mississippi | $1,725 | $1,186 |
| Missouri | $1,031 | $0 |
| Montana | $1,819 | $1,750 |
| Nebraska | $1,493 | $644 |
| Nevada | $2,440 | $1,980 |
| New Hampshire | $1,350 | $1,020 |
| New Jersey | $2,000 | $1,170 |
| New Mexico | $2,142 | $1,298 |
| New York | $2,096 | $0 |
| North Carolina | $1,041 | $0 |
| North Dakota | $1,300 | $838 |
| Ohio | $2,253 | $1,245 |
| Oklahoma | $1,611 | $1,656 |
| Oregon | $1,647 | $2,260 |
| Pennsylvania | $3,060 | $0 |
| Rhode Island | $1,450 | $2,365 |
| South Carolina | $1,252 | $750 |
| South Dakota | $1,275 | $637 |
| Tennessee | $2,648 | $1,235 |
| Texas | $2,563 | $1,080 |
| Utah | $3,181 | $815 |
| Vermont | $1,498 | $750 |
| Virginia | $2,278 | $1,490 |
| Washington | $2,277 | $2,823 |
| Washington D.C. | $2,778 | $3,258 |
| West Virginia | $1,560 | $750 |
| Wisconsin | $2,448 | $710 |
| Wyoming | $2,053 | $1,265 |
**Iowa provides home buyers title coverage through the state-sponsored Iowa Title Guaranty program.
How to get cheap title insurance
Title insurance is one key area where you may be able to save money on closing costs when buying a house.
With some extra effort and due diligence, you could save yourself hundreds or thousands of dollars on title insurance. Here's how:
Negotiate to have the seller cover the title insurance costs
Who pays for title insurance is 100% negotiable. If you’re buying a home, you may be able to get the seller to cover some or all of the title insurance costs. In some states, it may even be customary for the seller to purchase the owner's title insurance policy.
Shop around and compare title companies
You may save a lot of money by comparing title rates and fees before choosing a title insurance company. We found that title fees can vary by as much as 40%, depending on which provider you go with.
Though title fees can vary significantly, title insurance premiums may not. These premiums are regulated by each state's department of insurance, so they likely won’t change much from company to company.
Ask for a reissue rate
If you're buying a home from a seller who purchased it less than 10 years ago, you're eligible for a special title insurance pricing option called a "reissue rate." This is a reduced price offered because the new title insurer can essentially extend the previous policy.
The reissue rate will typically be around 40% less than the standard rate, which can save you hundreds of dollars on title insurance premiums.
Buy both policies from the same title insurance company
You can get a discounted rate on your title insurance when you buy lender's and owner's title insurance from the same company. This is called a simultaneous issue rate.
Based on our research of title insurance premiums, choosing to buy both policies from the same title insurance company could save you 15–44%.
Potential Simultaneous Issue Savings by City and Home Value
| Home Sale Price | Los Angeles | New York City | Dallas |
|---|---|---|---|
| $250,000.00 | 16% | 32% | 42% |
| $500,000.00 | 17% | 31% | 43% |
| $1,000,000.00 | 15% | 29% | 44% |
If you’re looking to save on home-selling costs, lowering your realtor commission fees will have the biggest impact on how much cash you walk away with after closing.
Clever’s free agent-matching service connects you with top local agents — and pre-negotiates low rates, saving you up to 50% on listing fees!
Related reading
Methodology
Our title insurance cost estimates come from Stewart Title quotes. We collected this data in September 2025.
We used these details when collecting quotes:
| Transaction type | Sale with a mortgage (20% down payment) |
| Sale price | $400,000 |
| Location | Largest city by population in each state |