Tennessee Title Insurance Calculator

What is Title Insurance in Tennessee?

Title insurance is an important cost component within Closing Costs that always intrigues a first time home buyer. Title insurance in Tennessee protects buyers and lenders from financial liabilities that may arise due to a title defect or a hidden lien. 

Have a look at our Title Insurance explainer video to see how title insurance can protect your lender and your ownership in case of a title defect. 

There are two types of Tennessee title insurance policies: Lender’s Title Insurance Policy and Owner’s Title Insurance Policy.

Lenders in Tennessee often require borrowers to purchase a Tennessee Lender’s Title Insurance Policy which guarantees protection for Tennessee lenders against issues arising out of defects on the title of a Tennessee property. On the other hand, the Tennessee Owner's Title Insurance Policy protects the buyer against claims and liens. 

Title insurance policy premiums in Tennessee show up as an itemized list of a closing cost worksheet for a buyer and seller such as a Closing Disclosure, Loan Estimate, HUD-1, or an ALTA Settlement Statement. If you're looking to get a preview of what these costs look like, use this free Tennessee title insurance calculator.

How much does title insurance cost in Tennessee?

Title insurance costs can vary in Tennessee from one county to another. For a $200,000 property, you would pay $1,279 in Davidson county, $1,129 in Hamilton County, and $946 in Shelby county. 

Here are some more use cases based on property price. We are considering Davidson county for these calculations. 

• For a purchase price of a $500,000 property in Tennessee with a 20% down payment ($100,000), the cost of title insurance policy and lender's policy are $2,594 and $35 respectively. 
• For a purchase price of a $500,000 property in Tennessee bought with full cash, the cost of the title insurance owner's policy is $2,594. 
• For a purchase price of a $1,000,000 property in Tennessee with a 20% down payment ($200,000), the cost of the title insurance owner's policy and lender's policy are $4,094 and $35 respectively.
• For a purchase price of a $1,000,000 property in Tennessee bought with full cash, the cost of the title insurance owner's policy is $4,094. 
• For a purchase price of a $5,000,000 property in Tennessee with a 20% downpayment ($1,000,000), the cost of the title insurance owner's policy and lender's policy are $12,094 and $35 respectively. 
• For a purchase price of a $5,000,000 property in Tennessee bought with full cash, the cost of the title insurance owner's policy is $12,094. 

Simultaneous issue of lender’s policy with the ALTA Owner’s policy will cost you $35 in Tennessee. 

How is Title Insurance Calculated in Tennessee?

Tennessee has multiple pricing slabs based on county clusters as given below. 

For Davidson, Rutherford, and Williamson Counties :

For Hamilton and Knox Counties

For Shelby County

All Other Counties 

Say you want to calculate the cost of the owner's title policy for a $500,000 property in Davidson County. The total cost will be: 

What is the Owner's Title policy in Tennessee?

The owner's policy is a legal document that shields the owners from unknown defects such as missing heirs, incorrect documentation, unjust court proceedings, and protects their ownership. The owner’s policy contributes to the majority of the costs that go into purchasing the title insurance. 

What is Lender’s Title policy in Tennessee?

The lender’s policy is often purchased along with the owner’s policy. It protects the lender from title defects such as a pending construction lien on the property, errors in the title, and other issues that may arise after the title has been transferred to the buyer. 

What is not covered in Title Insurance in Tennessee?

Title insurance may not cover the following:

• Losses due to infestation
• Financial losses due to repair and maintenance of items that were not revealed during the property inspection.
• Damages due to natural calamities such as thunderstorms.
• Damage due to a fire

How long is the title policy valid in Tennessee?

The title policy remains valid till the time you remain the owner of the property. Only when you decide to sell, a new policy must be made in the name of the buyer. 

Who regulates Title Insurance in Tennessee?

The Tennessee Department of Insurance and Commerce is responsible for the title insurance landscape in Tennessee. However, policy prices across the state vary from one title company to another. 

Who pays for Title Insurance in Tennessee?

Title insurance fees can be paid by either of the parties. However, as a custom, the seller pays for the title insurance in the southern part of the state while the buyers generally pay in the northern counties of the state. 

Is Title insurance required in Tennessee?

Title insurance is required for all real estate transactions that have a mortgage, although it is not mandated by the law. Most transactions happen with both parties purchasing their respective policies. 

Should you shop for title insurance in Tennessee?

You can definitely shop for title insurance in the state of Tennessee by approaching any reputable title company. However, if you are skeptical, you can ask your agent or lender to help you out with the process.  

Is there any discount on Title Insurance Policy in Tennessee?

Technically there is no discount on title insurance in Tennessee. But what you can do is go for simultaneous issuing of both Owner’s Policy and Lender’s Policy at the same time. This way you only pay a fixed amount of $35 for the Lender’s Policy.