Buyer guide
Title insurance protects against problems with a home's ownership history that nobody caught before you bought it. There are two kinds, one for your lender and one for you, and only one of them is optional. Here's how they work and how to decide.
Two policies
| Lender's policy | Owner's policy | |
|---|---|---|
| Required? | Yes, if you're getting a mortgage | No, it's optional |
| Who it protects | Your lender, up to the loan amount | You, up to the price you paid |
| Your equity | Not protected | Protected |
| How long it lasts | Until the loan is paid off | As long as you or your heirs own the home |
| How you pay | One-time premium at closing | One-time premium at closing |
Many buyers assume the lender's policy covers them too. It doesn't: if a title problem comes up, the lender's policy protects the bank's loan, not your down payment or the equity you build.
What it covers
Before closing, the attorney searches the public records for problems with the title. Title insurance covers the ones that search can miss, problems that started before you owned the home, such as:
If a covered claim comes up, the policy pays for your legal defense and covers your loss, up to the policy amount.
Title insurance looks backward. It doesn't cover problems you create after you buy, home repairs or defects, or anything the policy lists as an exception.
Read the exceptions in your title commitment before closing, and ask the attorney about anything you don't understand.
Full coverage
Title insurance only covers what can be verified. Without a current survey, policies usually exclude anything a survey would have shown: boundary disputes, encroachments like a neighbor's fence or driveway over the line, and unrecorded easements.
To get that coverage, you may need a new survey, and sometimes a newly recorded plat, during your due diligence period. Ask the closing attorney what your policy will require so you're not left with gaps.
Surveyors book up quickly, and a rush fee is common during a short due diligence period. Decide on a survey when you write your offer.
Under contract checklist →Buying a policy
In Georgia, your closing attorney is usually also the title insurance agent, and many attorneys around here use Chicago Title as the underwriter. Buying the owner's policy at closing alongside the lender's policy is typically the least expensive way to get it.
If you decline the owner's policy at closing, most attorneys around here will still let you buy it within about 30 days at the same discounted rate. Ask your attorney how long you have.
Chicago Title's online rate calculator gives you an estimate of the owner's and lender's premiums for a Georgia purchase. Your closing attorney's fee sheet will have the exact numbers.
You can buy title insurance from another agent instead of your closing attorney, but it usually costs more, especially if the owner's policy isn't issued together with the lender's.
Most Georgia closing attorneys issue policies through one of these national underwriters. If you shop on your own, stick with an established company like these and ask your closing attorney to confirm the policy will meet your lender's requirements.
Closing fees
An owner's policy is a one-time cost that protects what's likely your biggest investment for as long as you own it. We recommend it for most buyers, and especially for cash buyers, who have no lender's policy at all.
Chicago Title rate calculator ↗ Chicago Title: owner's title insurance (PDF) ↗ Getting ready to close →Questions about title?
We'll get the fee sheet and title insurance quote from your closing attorney so you can compare your options before closing day.
Good to know: this is a general overview. Coverage, exceptions and pricing vary by policy and attorney; read your title commitment and policy, and ask your closing attorney.
We're real estate agents, not attorneys. Nothing on this page is legal advice. Laws change and every situation is different, so always consult an attorney about your specific situation. Attorneys you can contact: Weissman PC · Blasingame, Burch, Garrard & Ashley, P.C.