Title Insurance in California: Owner’s vs. Lender’s Policies
Figures and rules in this post are as of November 6, 2026, from the sources linked below. Check the source for any later update.
Title insurance covers losses from certain defects in title that existed before the policy date. Examples include an unknown lien, a forged signature in the chain of ownership, or a recording error. It is paid once, at closing.
Two policies
- Lender’s policy: Required by most lenders. It protects the lender’s interest up to the loan amount.
- Owner’s policy: Protects the buyer’s ownership interest, typically up to the purchase price, for as long as the buyer owns the property.
The preliminary report
Early in escrow, the title company issues a preliminary title report. It lists recorded liens, easements, CC&Rs and other items the policy will exclude or require cleared before closing. Reviewing it is part of the buyer’s investigation.
Who pays
Who pays for each policy is set in the purchase contract and can vary by local custom. Your escrow officer will show the charges on the settlement statement.
Title insurers in California are regulated by the California Department of Insurance.
Sources
Questions about a home in Los Angeles or the Valley?
Lianna Danielyan, REALTOR® · Equity Union · CA DRE #02142653 · 13400 Ventura Blvd, Sherman Oaks, CA 91423 · (818) 669-6245
Listing information is provided through Equity Union’s IDX/BoldTrail service, is deemed reliable but not guaranteed, and should be independently verified. Information on this page is general and is not legal, tax or financial advice. Equal Housing Opportunity.