What is lender's title insurance on a Loan Estimate?

Updated November 2026 · Every dollar figure is an illustrative example, not a quote

Lender's title insurance is a one-time policy that protects the lender, not you, if someone later turns out to have a claim on the property that the title search missed, and on a $380,000 loan a premium in the high hundreds to about $1,500 is common, though it varies a great deal by state. Nearly every lender requires it, and in most states you may shop for the title company.

Where it is on the form

Page 2, Section C, Services You Can Shop For, as Title – Lender's Title Policy, on the model form. A lender that does not let you shop lists it in Section B instead. Every title-related line on the form starts with the word Title so you can find them together.

Illustrative rangeVaries by state; often several hundred dollars to about $2,500 on a $380,000 loan as the Loan Estimate shows it

Title premiums are set by state rules in some states (Texas and Florida publish rate schedules, for instance) and by competition in others, and they scale with the loan amount. When an owner's policy is bought at the same time, the lender's policy is often issued at a much lower 'simultaneous issue' rate. Refinances often qualify for a reissue discount if the prior policy is recent; ask for it. The Loan Estimate shows the lender's policy at its full stand-alone price even when an owner's policy is bought too, so this line can read far higher than what you will actually be charged for it; in Texas, for example, the promulgated rate for a $380,000 policy is about $2,160.

Paid toThe title insurance underwriter, through the title or settlement company

Can you shop for it?Yes

Can it change at closing?10% tolerance: It can rise, but only 10% in total with the other fees in its group

The policy pays the lender's loss, not yours, if a title defect surfaces: a forged deed in the chain, an unknown heir, an unpaid contractor's lien. It costs once at closing and lasts as long as the loan. Your own protection is a separate owner's title policy in Section H, which the form marks optional.

On a refinance you buy a new lender's policy even though you already own the home, because the new loan is a new lien. Most title companies offer a reissue or refinance rate when the prior policy is within a few years; it is not always applied unless you ask.

Can you shop for it?

Usually, yes. The lender must give you a written list of providers it accepts, and you may use one of them or bring your own title company. In a few states the premium is the same everywhere by rule and only the company's own fees differ, so shopping saves less; in others the premium itself varies between companies. Many buyers never shop it, which is why asking for a second title quote so often pays.

Can it change between the Loan Estimate and closing?

If you pick a company from the lender's written list, the fee joins the 10% group: it can rise, but the group's total (recording fees plus the shopped services) can rise by no more than 10%. If you bring a company not on the list, there is no limit and the lender's estimate was just its best guess. If the lender did not let you shop at all, the fee is in Section B and cannot rise; if it let you shop but gave you no list, the fee stays in the 10% group.

Questions to ask the lender

Can I shop for the title company, and where is your written list of providers?
Is this premium quoted at the simultaneous-issue rate with an owner's policy, or on its own?
On a refinance: does this quote include the reissue discount for my existing policy?

Red flags

No written list of providers from the lender. It is required with the Loan Estimate whenever you may shop, and without it you cannot tell which providers keep you inside the 10% limit.
A lender's policy in Section B at a price above what a competing title company quotes, with the lender's affiliate as the provider.
A refinance quote with no reissue discount when your current policy is only a few years old.

Questions people ask

Is lender's title insurance required?

By nearly every lender, yes. It protects the lender's lien against defects the title search missed. The law does not require it, but a lender will not fund without it. Owner's title insurance, which protects you, is the optional one.

Why do I pay for insurance that protects the lender?

Because it is a condition of the loan, like the appraisal. The lender's risk is that the lien is worthless if the seller never really owned the home; the premium is the price of insuring that. It is one-time, not annual.

Can I use my own title company?

In most states, yes, and the lender must tell you so with a written list of providers it accepts. Using one from the list keeps the fee inside the 10% tolerance; bringing one of your own removes the limit but may well cost less.

Only have one quote? That's the problem.

Tell us the rate and the fees you were quoted. It is free, there is no credit pull, and nobody calls you. We check whether another lender beats it, fees included. Or start with the free Loan Estimate checker, which reads your rate, points and Section A and flags anything out of the ordinary.

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Every dollar figure on this page is illustrative. Fee ranges are general observations, not a survey or a quote, and are not a loan offer, approval, commitment to lend, or Loan Estimate. Your actual rates and fees depend on qualification with lenders, your state and county, and your closing date. The tolerance rules described are the federal TRID rules in general terms; the rule itself and your own Loan Estimate and Closing Disclosure decide how it applies to your loan. comparemyloan does not negotiate with lenders, lock rates, or take loan applications.