Title Insurance in Washington in WA — Real Estate Law… | CGMIMM
Real Estate Law · WA
Title Insurance in Washington
Washington title insurance protects buyers and lenders from financial loss due to title defects, liens, fraud, or boundary disputes that existed before the policy date.
Published May 8, 2026
## Title insurance in Washington
**Title insurance** is a one-time-premium insurance product that protects you against financial loss from title defects existing BEFORE the policy date. Different from most insurance: it covers PAST events that may surface later.
## Two types of title insurance
**1. Owner's policy.** Protects the BUYER:
- Covers full purchase price (often plus inflation rider)
- Lasts as long as you or your heirs own the property
- One-time premium paid at closing (~0.5%-1% of purchase price)
- OPTIONAL in most states (but strongly recommended)
**2. Lender's / mortgagee's policy.** Protects the LENDER:
- Covers loan amount only
- Decreases as loan is paid down
- REQUIRED for almost every mortgage
- New policy needed when refinancing
- One-time premium
## What title insurance covers
**Standard coverage typically includes:**
- Forged deeds in the chain of title
- Undisclosed heirs claiming the property
- Fraudulent transactions
- Errors in public records / surveys / indexing
- Liens not discovered in title search
- Tax liens
- Unrecorded mechanic's liens
- Easements / rights-of-way not disclosed
- Boundary disputes
- Defective execution of prior deeds
- Mistakes in recording
- Spousal claims (community property states)
- Notice / service defects in foreclosures
- Improper handling of probate transfers
## Standard exclusions
Title insurance does NOT typically cover:
- Environmental issues (asbestos, lead, contamination)
- Zoning / land-use violations
- Eminent domain (unless filed before policy)
- Issues you knew about but didn't disclose
- Issues created after policy date
- Mineral rights (varies)
- Riparian rights
- Fence / boundary disputes (without survey endorsement)
- Government surveys / Indian land claims
## Endorsements (additional coverage)
Common endorsements that broaden coverage:
- **Survey endorsement** — covers boundary issues
- **Zoning endorsement** — limited zoning coverage
- **Restrictive covenant violations**
- **Mineral rights**
- **Solar panels / improvements**
- **PUD / condominium coverage**
- **Inflation protection** (auto-increases policy limit)
- **Future advance** (for lenders with HELOCs)
- **Environmental** (limited)
Endorsements add to the premium.
## Cost
Title insurance premiums vary by state:
- **Promulgated rates** in some states (FL, NM, TX) — same rate from any insurer
- **Filed rates** elsewhere — insurers compete
- Typical owner's policy: 0.5%-1% of purchase price
- Lender's policy: $250-$500 + ~0.05%-0.1%
- One-time premium
Some states allow **simultaneous-issue** discounts when buying both owner's + lender's at same time.
## How claims work
When a title defect surfaces:
1. **Notify the title insurer** immediately
2. **Insurer investigates**
3. **Insurer decides:**
- Defend the title (legal action against claimant)
- Cure the defect (pay off lien, quiet title, etc.)
- Pay the loss
- Combination
4. **Insured cooperates** with investigation
Insurer pays for legal defense AND any covered losses.
## When title insurance pays off
Real-world examples:
- Forged deed in chain shows up; insurer pays purchase price
- Old mortgage never released; insurer pays to clear
- Surveyor error reveals boundary problems; insurer covers diminution in value
- Disinherited heir surfaces; insurer pays settlement
- Mechanic's lien from prior owner's contractor; insurer pays it
- Identity-theft real-estate fraud; insurer covers loss
- Old easement allowing utility to run pipes through property; insurer covers loss in value
## Title search vs title insurance
**Title search** — examination of public records by attorney or title company before closing. Finds known defects.
**Title insurance** — protects against UNKNOWN defects that title search missed.
Most defects ARE caught in title search. Title insurance is for the unknowables.
## Title commitment
Before closing, you receive a **title commitment** showing:
- Schedule A — basics (legal description, parties, premium)
- Schedule B-I — requirements (what must be done before policy issues)
- Schedule B-II — exceptions (what's NOT covered)
**Read Schedule B-II carefully.** Standard exceptions might include things you'd want covered (encroachments, easements). Negotiate to have them removed if possible.
## Who pays — buyer or seller
Varies by state custom:
- **Buyer pays** in most states (CA, AZ, FL, MO, others)
- **Seller pays** in NM, TX (typically), parts of OH, parts of NY
- **Negotiable** — counties have customs but anything is negotiable
Lender's policy is almost always paid by buyer (rolled into closing costs).
## Title insurance fraud
Some title insurance "alternatives" or schemes are scams:
- "Discount" policies that don't have proper underwriting
- "Self-insurance" warranties from realtors
- One-time "warranty" with no actual claims process
Use ALTA-member insurers (American Land Title Association) — established companies with real claims-paying ability.
## What you should do
When buying Washington real estate: get a full title search + an owner's title insurance policy. Don't skip the owner's policy — even though it's optional, the cost is small relative to the protection. Read the title commitment carefully, especially the Schedule B-II exceptions. Most Washington real-estate attorneys can review title issues for a flat fee.
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*This guide is general information about Washington law as of early 2026 and is not legal advice. Title insurance is technical. Talk to a licensed Washington real-estate attorney about your specific situation.*
This guide is for general information only and does not constitute legal advice. Laws change and outcomes depend on your specific situation — talk to a licensed attorney before acting on anything you read here.