Short answer
It's optional, but worth considering. Most lenders require a lender's title policy, which protects only the amount they lend. An owner's title policy protects you if someone later claims a right to the home from before you bought it, such as unpaid taxes, a contractor's lien or a problem in an old deed. You pay for it once, at closing, and it usually costs less when bought together with the lender's policy.
What does title insurance cover?
Before closing, a title search checks the public records for liens, unpaid taxes, easements and breaks in the chain of ownership. Title insurance covers problems the search didn't catch or couldn't, such as a forged signature on an old deed, a missing heir or a recording error. If a covered claim comes up, the insurer pays to defend your title or covers the loss up to the policy amount.
What's the difference between the lender's and owner's policies?
The lender's policy protects the lender's loan and shrinks as you pay it down. The owner's policy protects your ownership for as long as you or your heirs own the home. If you buy with cash, there's no lender's policy, so the owner's policy is the only coverage.
Can I shop for title insurance?
Usually yes. Your Loan Estimate lists the services you can shop for, and title services are often among them. The CFPB notes you could save money by shopping, and that buying both policies from the same provider usually costs less than buying them separately. In New Hampshire, closings are commonly handled by a title company or a real estate attorney. See how to read a Loan Estimate.
Where does it show on my closing costs?
The lender's policy appears with the title charges in the loan costs. An owner's policy you choose to buy is listed under Other costs. The itemized list from your closing agent can look different from the Loan Estimate, which doesn't by itself mean you're being overcharged. See NH closing costs.
Sources
Checked November 2, 2026. Rules and dates change, so confirm current details before you rely on them.
General information only, not tax or legal advice. Program availability, eligibility and terms vary by lender and are subject to change and to underwriting approval. Not a commitment to lend.