Title Insurance in New Hampshire: Do You Need It?

Buying a home in Windham is exciting, but the paperwork can feel overwhelming. One line item that raises questions is title insurance. You may wonder if you actually need it, what it covers, and how it fits into your closing costs. In this guide, you’ll learn what title insurance is, the difference between a lender’s policy and an owner’s policy, what to expect in Rockingham County closings, and how to protect your investment. Let’s dive in.

Title insurance, in plain English

Title insurance is a one-time insurance product you buy at closing to protect against past issues that can affect your ownership rights. Unlike homeowners insurance, which covers future risks like fire, title insurance covers defects from the past, such as unrecorded liens or errors in public records.

If a covered title problem comes up after you close, the policy typically pays to defend your title in court and covers losses up to the policy limit. This can protect your equity and save you from expensive legal battles.

Policies have exclusions. Common exclusions include issues you already knew about and did not disclose, environmental hazards, zoning rules unless endorsed, and some unrecorded easements or boundary problems unless you add the right endorsement.

Lender vs. owner coverage

Who each policy protects

• Lender’s title policy: Protects the mortgage lender’s interest in the property up to the loan amount. Lenders usually require it as a condition of funding the loan. It does not protect your equity.
• Owner’s title policy: Optional but commonly recommended. Protects you as the owner, typically up to the purchase price or another chosen amount.

When coverage begins

Both policies become effective at closing when the policy is issued. Before that, the title company provides a title commitment that lists items to clear or accept as exceptions.

Why owners consider it

An owner’s policy protects your financial stake. If a title defect surfaces after closing, the insurer typically covers your legal defense and potential loss, subject to policy limits. This can be especially valuable for older properties or homes with complex histories, such as estate transfers or unclear boundaries.

What it costs in Windham

Title insurance is paid once at closing. The premium is based on the policy amount, often tied to your purchase price, plus any endorsements you add for extra coverage. Insurers follow rate schedules, and exact pricing varies.

Customs on who pays can differ by town and contract. In many New England transactions, buyers purchase the required lender’s policy and often choose to add an owner’s policy. In Rockingham County, it can be negotiated. Sometimes buyers pay, sometimes sellers pay, or the cost is split. Always check your purchase and sale agreement and ask your agent or settlement company about current local practice.

Other closing items can show up alongside the title premium. These include title search and exam fees, issuance of the title commitment, attorney or closing agent fees, escrow fees, and recording fees at the Rockingham County Registry of Deeds. All of these appear on your Closing Disclosure or settlement statement.

For planning purposes, think of title insurance as a one-time cost based on your purchase price plus the cost of any endorsements. Ask your title or settlement company for a written quote before closing with a clear breakdown of the lender’s policy, owner’s policy, endorsements, and any related closing fees.

Common New Hampshire title risks

Frequent defects to watch for

• Outstanding mortgages, judgments, tax liens, or mechanics liens that were not released.
• Errors in deeds, such as incorrect acknowledgements, missing signatures, or wrong legal descriptions.
• Undisclosed heirs or incomplete probate transfers after the death of an owner.
• Forged or fraudulent documents in the chain of title.
• Survey or boundary issues, including encroachments or easements not shown on the deed.
• Recording mistakes that create ambiguity in prior transfers.
• Restrictive covenants, HOA rules, or unrecorded rights-of-way that affect use or access.
• Fraud or identity theft related to a prior transaction.

How policies respond

Before closing, the title company searches the records and issues a title commitment that lists exceptions to clear or accept. After closing, if a covered defect appears, title insurance typically pays to defend your title and covers monetary losses up to the policy limit. In some cases, the insurer may cure the defect, such as by obtaining a lien release.

Some risks, like boundary disputes or zoning issues, are not part of standard coverage. You can sometimes add endorsements for an extra fee to close those gaps.

Local examples for Windham buyers

• Older Windham homes with histories of estate transfers can pose probate-related risks. Ask for a thorough title search and confirm clear conveyance.
• Properties near town or townline roads may need verification of recorded access. If access is unclear, ask about a legal access endorsement.
• If you plan to build or change how you use the property, consider a zoning or municipal lien search and ask about endorsements that align with your plans.

Endorsements to ask about

Endorsements expand your protection and can be useful based on the property and your plans.

• Survey or boundary endorsement if lot lines or encroachments are a concern.
• Access endorsement to confirm legal access to a public road.
• Zoning use endorsement if you plan construction or a change in use.
• Condominium endorsements for condo purchases.
• Restrictive covenant or HOA-related endorsements where applicable.
• Municipal lien or similar endorsements if local charges are a concern.

Ask your title company which endorsements are available, what they cover, and how they affect your premium.

Buyer checklist before closing in Windham

• Request the title commitment early. Review the exceptions and ask for written explanations of anything unclear.
• Get a written quote for both lender and owner policies, including endorsements and closing fees.
• Confirm who pays for each policy based on your contract and local custom. Put the cost allocation in writing if it is important to you.
• Consider a survey or updated boundary certification if lines are unclear or you plan improvements.
• Discuss endorsements that fit your situation, such as survey, access, zoning, municipal lien, condo, or restrictive covenant endorsements.
• Keep your final policy and schedules after closing. These documents are essential if a title issue arises.

Local resources for answers

• Rockingham County Registry of Deeds for recorded documents and current recording fees.
• New Hampshire Insurance Department for regulatory and rate information.
• American Land Title Association for plain-language guidance on policy coverage.
• Consumer Financial Protection Bureau for help understanding your Closing Disclosure.
• Local title attorneys and established settlement companies that handle Windham closings.

Bottom line: Do you need it?

A lender’s policy protects your lender and is usually required if you finance your purchase. An owner’s policy is optional, but it protects your equity and provides legal defense if a covered title issue appears later. For many Windham buyers, the one-time cost at closing is a practical way to reduce risk on a major investment.

If you want help reviewing your title commitment, understanding endorsements, or negotiating who pays for the owner’s policy, let’s talk. You can count on the local experience and guidance of Key Team | Compass to help you close with confidence.

FAQs

Is owner’s title insurance required for Windham homebuyers?

• No. Lenders typically require only a lender’s policy; an owner’s policy is optional but commonly recommended to protect your equity.

What does title insurance cover compared to homeowners insurance?

• Title insurance covers past defects in the chain of title and pays to defend your ownership, while homeowners insurance covers future risks like fire or theft.

How long does an owner’s policy last in New Hampshire?

• Coverage generally lasts as long as you or your covered heirs hold an interest in the property, subject to policy terms and limits.

Can I buy an owner’s policy after closing on a Windham home?

• Some insurers allow post-closing purchase within a limited window, but you usually get the best terms and protection when you buy at closing.

Who typically pays for the owner’s policy in Rockingham County?

• It varies. Many buyers choose to purchase it, but in some deals the seller pays or costs are split. Check your purchase and sale agreement and ask your title company about current local practice.

How much does title insurance cost in Windham, NH?

• It is a one-time premium based on your purchase price and any endorsements, plus related closing fees. Ask your title or settlement company for a written quote and itemized breakdown.