American Land Title Association (ALTA) Practice Exam 2026 – Your Comprehensive All-in-One Guide to Success!

Title insurance premiums are typically paid once, at the time of closing on a real estate transaction. This one-time payment secures the buyer's policy for the duration of ownership and protects against any title defects that may arise after the purchase. Unlike other types of insurance that require regular premium payments, title insurance provides a long-term safeguard against ownership disputes, liens, and other title issues that may occur, making the one-time premium structure a practical choice for property buyers.

This structure is particularly advantageous as it simplifies the financial obligations related to home ownership, allowing buyers to focus on other ongoing costs such as mortgage payments and property taxes. The premium itself is based on the property's purchase price and varies by location, but it is uniformly understood in the industry that the fee is a one-time expense assessed during the closing process.