Title insurance is the one-time cost that protects against hidden claims on your title, and in Texas sellers commonly pay for it. It sounds like an add-on, but it is the peace of mind that covers you long after the sale is done. Here is what the two policies do.

Lender's Title Insurance Policy

The term: the lender's policy protects the lender's interest in the property.

The meaning: it is usually required when the buyer has a mortgage, and it covers the loan amount.

The money: it drops off once the loan is paid off, because it only protects the lender.

The real-world consequence: the lender's policy is the mandatory piece, but it does not protect the owner.

Owner's Title Insurance Policy

The term: the owner's policy protects your equity and your ownership rights.

The meaning: it covers claims or defects in the title that surface after closing.

The money: in Texas sellers commonly pay for it, and it covers you for as long as you own the home.

The real-world consequence: one policy for the buyer's lender, one for the buyer's equity, and both are settled at closing.

Cost of Title Insurance

The term: the cost is a one-time premium paid at closing, based on the sale price.

The meaning: it is a flat closing cost, not an ongoing monthly premium, and rates in Texas are regulated.

The money: the cost is small compared to the protection, and it covers real title risks.

The real-world consequence: title insurance is a small one-time cost for huge peace of mind, and I have seen title issues that would have cost the homeowner thousands without it. Make it a great one, Patriot Nation.