How Much Does Title Insurance Cost?

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By Jessica Johansen Updated June 17, 2024

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Title insurance costs about 0.5% of the home price. For the national median home value of $360,681,[1] that equals about $1,800. 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:

Owner's title insurance premiumLender's title insurance premiumTitle fees
$1,600$400$1,000
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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[2]ALTA Homeowner’s Policy[3]
Cost0.29–0.45%0.40–0.50%
Recommended forVacant land or some commercial propertiesResidential homes
Coverage*
  • Prior forgery or fraud related to the title
  • Unrecorded liens on the title from a government authority
  • Clerical errors related to the title
  • All ALTA Owner's Policy coverage
  • Mechanic's liens (for previously unpaid contractors)
  • Encroachments of neighboring structures onto your land
  • Loss of vehicular and pedestrian access to your land based on a legal right
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*See Stewart Title's ALTA Policy Comparison for a more comprehensive coverage comparison.

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:

StateTitle insurance cost*Title fees
Alabama$1,375$0
Alaska$2,074$1,045
Arizona$2,970$1,635
Arkansas$985$0
California$2,148$3,158
Colorado$2,540$310
Connecticut$1,732$1,000
Delaware$1,655$0
Florida$2,100$958
Georgia$2,258$0
Hawaii$2,085$0
Idaho$1,862$1,545
Illinois$3,035$3,136
Indiana$1,101$945
Iowa**$0$0
Kansas$1,046$325
Kentucky$1,625$910
Louisiana$1,995$1,250
Maine$1,370$695
Maryland$2,600$1,845
Massachusetts$1,775$1,225
Michigan$3,071$1,035
Minnesota$1,401$1,390
Mississippi$3,071$775
Missouri$374$685
Montana$1,611$1,550
Nebraska$1,432$494
Nevada$2,390$1,980
New Hampshire$1,200$1,020
New Jersey$1,825$1,170
New Mexico$2,067$1,181
New York$2,096$0
North Carolina$874$0
North Dakota$1,025$0
Ohio$1,937$1,125
Oklahoma$1,280$1,606
Oregon$1,547$1,960
Pennsylvania$2,735$1,205
Rhode Island$1,450$1,025
South Carolina$1,252$600
South Dakota$1,150$531
Tennessee$2,598$1,235
Texas$2,513$1,181
Utah$3,096$750
Vermont$1,423$600
Virginia$2,133$1,290
Washington$1,864$2,823
Washington D.C.$2,728$1,800
West Virginia$1,510$0
Wisconsin$2,173$260
Wyoming$1,895$0
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*Premiums quoted are for simultaneous issue rates, where both policies (the lender's and owner's) were purchased from the same title insurance company.
**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 21–44%.

Potential Simultaneous Issue Savings by City and Home Value

Home Sale PriceLos AngelesNew York CityDallas
$250,000.0021%32%42%
$500,000.0023%31%43%
$1,000,000.0024%29%44%
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Figures represent the cost difference in title insurance premiums for both owner's and lender's policies, as provided by Stewart Title.

Clever can help you save on closing costs!

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 June 2024.

We used these details when collecting quotes:

Transaction typeSale with a mortgage (20% down payment)
Sale price$400,000
LocationLargest city by population in each state
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Article Sources

[1] Zillow – "United States Housing Market". Updated April 30, 2024.
[2] American Land Title Association – "ALTA Owner's Policy of Title Insurance (Redlined Against 2006 Policy)". Updated July 1, 2021.
[3] American Land Title Association – "ALTA Homeowner's Policy of Title Insurance". Updated Sept. 21, 2021.

Authors & Editorial History

Our experts continually research, evaluate, and monitor real estate companies and industry trends. We update our articles when new information becomes available.

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