What Is Title Insurance in Washington — and Do You Really Need It?

Title insurance is one of those things buyers pay for at closing…
without really knowing what it does.

It’s not exciting.
It’s not optional in most cases.
And it only matters if something goes wrong — which is exactly why it exists.

Let’s break it down in plain English, the way Washington buyers actually need to understand it.

1. What “Title” Means in Washington Real Estate

When you buy a home, you’re not just buying the structure.

You’re buying:

• Legal ownership

• The right to sell later

• Protection against past claims

Title is the legal history of who has owned the property — and whether anyone else could claim a right to it.

Title insurance protects you if that history isn’t as clean as it appears.

2. What Title Insurance Actually Does

Title insurance protects against past issues, not future ones.

That includes things like:

• Unknown liens

• Unpaid taxes

• Recording errors

• Forged signatures

• Boundary disputes

• Missing heirs

• Clerical mistakes in prior deeds

If a valid claim shows up after you buy the home, title insurance:

• Covers legal defense

• Covers financial loss (up to policy limits)

Without it, those costs fall on you.

3. Why Title Insurance Is So Common in Washington

Washington is a deed-recording state, meaning ownership transfers when the deed records with the county.

This happens during escrow — not at signing.

If you want to understand that process more deeply, this ties directly into it:
What Is Escrow in Washington? Explained Simply
Title insurance is part of making sure that recording is clean, legal, and defensible.

4. Two Types of Title Insurance (This Matters)

Most buyers don’t realize there are two different policies.

Lender’s Title Insurance

• Required by the lender

• Protects the bank, not you

• Mandatory if you’re financing

Owner’s Title Insurance

• Protects you

• Optional — but strongly recommended

• One-time cost (not monthly)

If you’re buying with a loan, you will always see both on your closing statement unless you decline the owner’s policy.

5. Who Pays for Title Insurance in Washington?

In Washington, who pays is negotiable, but most commonly:

• Seller pays for the owner’s policy

• Buyer pays for the lender’s policy

This can vary by region, contract terms, and negotiations — especially in competitive markets.

6. How Much Does Title Insurance Cost in WA?

Title insurance is a one-time premium, not recurring.

Typical range in Pierce County:

• $700–$1,500+ depending on purchase price

Once paid, it lasts as long as you own the home.

No renewals.
No monthly bill.

7. What Title Insurance Does NOT Cover

This is just as important.

Title insurance does not cover:

• New liens you create

• Future disputes

• Property condition issues

• HOA issues that arise after closing

• Zoning or use restrictions you were aware of

It’s protection for the past — not a warranty for the future.

8. Why Buyers Don’t Hear About Title Problems Until It’s Too Late

Most title issues don’t show up immediately.

They often surface:

• During a future refinance

• When selling the home

• Years after purchase

By then, fixing it without title insurance can be expensive and stressful.

9. How Title Insurance Fits Into the Overall Buying Timeline

Title work runs quietly in the background during escrow.

It’s happening at the same time as:

• Inspections

• Appraisal

• Loan underwriting

If you want to see how all of this overlaps during the buying process, this timeline helps put it into perspective:
How Long Does It Take to Buy a Home in Washington?
 

10. Why This Matters More Than People Think

I’ve seen title issues tied to:

• Divorce

• Estate sales

• Older properties

• Homes transferred multiple times within families

Especially in Washington, where properties can pass through generations, missing details matter.

Title insurance is quiet protection — until the day it’s not.

11. Is Owner’s Title Insurance Really Worth It?

For most buyers, yes.

You’re paying once to protect:

• One of the largest purchases of your life

• Your future ability to sell

• Your financial position

It’s one of the few closing costs that protects only you.

12. Final Thought

Title insurance isn’t exciting — but neither is finding out years later that someone else has a legal claim to your home.

If you’re buying in Washington and want help understanding what’s actually protecting you (and what isn’t), I’m always happy to walk through your specific situation so there are no surprises — now or later.

 Written by: Lani Fisher — Washington Realtor Helping Everyday Buyers & Sellers With Confidence