The two kinds of title insurance
Most Kansas purchases with a mortgage involve two policies, issued at the same closing.
- Owner's policy: protects you, the buyer, for the amount you paid. Optional, but it's the only one that protects your equity.
- Lender's policy (loan policy): protects the mortgage lender for the loan amount. Lenders require it.
What title insurance covers
Covered risks are set by the policy form. Common examples:
- Forgery or fraud in an earlier transfer
- Liens or judgments that weren't found in the records
- Errors in the public records or the legal description
- Undisclosed heirs or spouses claiming an interest
- Deeds signed by someone without the authority to sign
- The cost of defending your title in court
What it doesn't cover
Anything listed as an exception in your commitment, problems you create after closing, and certain matters spelled out as exclusions in the policy, such as zoning laws. Boundary and survey questions are often excepted unless a survey is done and the policy is extended to cover them.
How the cost works
The premium is a one-time charge based on the purchase price for an owner's policy and the loan amount for a lender's policy. Title premiums are set by the underwriter's rates, so the exact figure depends on your price and loan. A title quote gives you the real number before you commit.
When both policies are issued together, the lender's policy is usually much cheaper than buying it on its own.
Who pays for title insurance in Kansas
There's no law that decides it. Your purchase contract does. In many Kansas City area contracts the seller pays for the owner's policy and the buyer pays for the lender's policy, but it's negotiable. Check the title section of your contract or ask your agent.
Common questions
Is title insurance required in Kansas?
A lender's policy is required by almost every mortgage lender. An owner's policy is optional, but without one, a title problem from before your purchase is your loss to fix.
Is title insurance worth it?
For most buyers, yes. It's a one-time cost that protects what is usually the biggest purchase they'll make, and it pays for the legal defense if someone challenges your ownership.
How long does title insurance last?
An owner's policy lasts as long as you or your heirs own the property. A lender's policy ends when the loan is paid off.
How do I know if I have an owner's title insurance policy?
Look in your closing package for a policy or a line for an owner's policy on your closing disclosure. The title company that handled your closing can send a copy.
Can I shop for title insurance?
Yes. Your loan estimate lists title services you can shop for, and you're free to choose your title company on a purchase unless your contract says otherwise.