How Title Insurance Differs From Other Types Of Insurance

04/30/2025 06:43 AM Mark Goodman

If you’re like most people, you probably pay for a few different types of insurance. There are the main policies like health insurance, homeowner’s insurance or automobile insurance, and then others have more niche policies, like dental, vision or even a pet health insurance policy. In our world, we deal with another type of policy - title insurance.

How Title Insurance Is Different

Title insurance is different from health insurance or automobile insurance in a few key ways. Let’s break down some of the main differences.

One-Time Fee - One aspect of a title insurance policy that sets it apart from other forms of insurance is that the policy holder is only required to pay a one-time fee in order to have coverage as long as they own the property. Imagine only having to pay for home insurance or health insurance once and having coverage for life. That’s essentially what you get with a time insurance policy. The one-time policy fee provides protection for as long as you own the commercial real estate. You won’t need to pay an annual or semi-annual premium like you have to do with other forms of insurance.
Transferrable - The idea of transferring your health insurance policy to another person seems a bit odd, but it’s pretty common in the title insurance world. If you pass away, your title insurance policy can remain in place and protect your heirs for as long as they hold the property. A new policy is only required if they choose to sell the property to someone else, who would then be responsible for securing their own policy. However, if you inherit property, there’s a good chance the original title policy from the original owner will offer you protection.
No Deductible - Finally, most title insurance claims do not have deductibles, which isn’t typically the case for something like health insurance or automobile insurance.

The world of insurance would likely be a lot simpler if other coverages acted more like title insurance. If you’re interested in acquiring title insurance for a commercial property you are considering buying, let the team at Commercial Partners assist. For more information, reach out to our team today at (612) 337-2470.