Short answerTitle insurance protects against problems with ownership that existed before closing, such as old liens, forged signatures, or recording errors. The lender's policy protects the lender; the owner's policy protects you. In Indiana the seller customarily pays for the owner's policy and the buyer pays for the lender's policy, though the purchase agreement can change that.
The two policies
| Policy | Protects | Customary payer in Indiana | Lasts |
|---|---|---|---|
| Owner's | The buyer | Seller | As long as you or your heirs own the home |
| Lender's | The lender | Buyer | Until the loan is paid off |
What it covers and does not
It covers covered title defects from before your purchase. It does not cover physical condition, boundary issues a survey would show unless added, or problems you create after closing.
Frequently asked questions
Is an owner's title policy required?
Lenders require the lender's policy. The owner's policy protects you and is customarily paid by the seller in Indiana.
Do cash buyers need title insurance?
There is no lender's policy, but an owner's policy is still wise.
Keep reading
Want to know what a buyer's inspector may find before they do?
Book a free pre listing condition walk. I walk the house with you, point out what inspectors and FHA, VA, and USDA appraisers tend to flag, and give you planning ranges so you can decide what to fix, credit, price in, or disclose.
Book a condition walkOr call or text (812) 525-5489, or email [email protected].
The condition walk is a REALTOR® and contractor evaluation, not a home inspection, and it does not replace one. If you have already signed a listing agreement with another agent, please take these questions to your agent.
Looking at a house and not sure what you are getting into?
Ask for a free Before You Offer review. Send me the listing. I look over the photos, the seller's disclosure, and recent sales, then flag likely condition issues and planning cost ranges before you write an offer.
Request a Before You Offer reviewOr call or text (812) 525-5489, or email [email protected].
The Before You Offer review is a REALTOR® and contractor review of the listing, not a home inspection. It is for buyers who are not already working with an agent. If you have an agent, please bring these questions to your agent.
Sources
- Old Republic Title, Real Estate Laws and Customs, Indiana
- Old Republic Title, Title insurance premiums: who pays and why
Written by John Long, REALTOR®, 1 Percent Lists Indiana Real Estate. Working contractor who has priced hundreds of home inspection repair requests. Former labor relations negotiator for a major manufacturer and U.S. Coast Guard veteran.
John Long, REALTOR® · 1 Percent Lists Indiana Real Estate · (812) 525-5489 · yourpropertynegotiator.com
This page is general information, not a substitute for a professional home inspection, and not legal, tax, insurance, or lending advice. Ask a real estate attorney about contracts and disclosure, a CPA about taxes, your lender about loan rules, and a licensed inspector or tradesperson about your house. Nothing here guarantees a sale price, net proceeds, repair cost, payment, timeline, appraisal, inspection result, or loan approval. Cost figures are planning estimates, not bids. I own Wardmark Property Operations LLC, a contracting company. You are always free to use any contractor you choose.