What if the biggest risk to your new Elizabethtown home is something you can’t see — an old lien, a missing signature, or a file room error? When you’re buying, the stack of closing papers can feel overwhelming, and title terms often sound like a different language. The good news is you can protect your ownership with the right title insurance plan and a clear process.
In this guide, you’ll learn what title insurance covers in Pennsylvania, the difference between lender and owner policies, typical costs in Lancaster County, common local red flags, and the steps to take before you close. You’ll also find practical questions to ask so you feel confident at the table. Let’s dive in.
Title insurance basics
Title insurance is a one-time policy that protects you from financial loss due to title defects that existed before you bought the home. If a covered problem surfaces later, the policy can pay legal defense costs and covered losses up to the policy amount.
This is very different from homeowners insurance. Hazard insurance protects you from future physical damage like fire or wind. Title insurance protects you from past issues in the ownership record.
Common covered risks include forged or defective deeds, improper signatures, mistakes in public records, undisclosed liens or judgments, and errors in legal descriptions.
Owner vs. lender policies
When you finance a home in Elizabethtown, your lender will require a title policy. That policy protects the lender’s interest in the property, not yours. Here is how they differ:
- Lender (loan) policy: Protects the lender up to the outstanding loan balance. Coverage declines as you pay down the mortgage. The lender is the insured party.
- Owner’s policy: Protects your equity and ownership rights for as long as you own the property, and often your heirs. It is optional but strongly recommended because the lender’s policy does not protect your ownership.
Both policies are typically issued at closing using standard forms adapted for Pennsylvania practice. If you only buy the lender policy, your personal ownership is not insured. If you buy the owner policy, your equity is protected if a covered issue emerges later.
Which one do you need?
- If you have a mortgage, a lender policy is required by the lender.
- If you want your ownership protected, purchase an owner’s policy at closing. Many buyers choose both, which can reduce the combined premium when issued together.
How title works in Elizabethtown
In Pennsylvania, title insurance companies and agents operate under state oversight. The Pennsylvania Insurance Department administers consumer protections, disclosures, and the complaint process.
Locally, title companies, title agents, and real estate attorneys perform title searches, issue commitment reports, handle closing, and issue policies. In Lancaster County, it is common for either a title company or an attorney to conduct your closing. Ask early who will issue your policy and who will lead settlement.
Your title search in Elizabethtown will pull records from the Lancaster County Recorder of Deeds and related public sources. Examiners review deeds, mortgages, tax and municipal lien records, probate indexes, and any plats or easements affecting the property. The result is a title commitment that lists what the insurer will cover and any exceptions or requirements that must be cleared before closing.
Local timeline you can expect
- Title order placed after you have a signed contract.
- Title search and examination completed, often within several business days depending on complexity.
- Title commitment issued with exceptions and requirements. The seller or parties may need to address liens, obtain releases, or correct deed language.
- Closing and recording. Funds are disbursed, the deed is recorded, and policies are issued or mailed after recording.
Complex situations like probate matters, prior unreleased mortgages, or conservation easements can extend the timeline. Review your commitment early so there are no surprises.
What’s covered and what’s not
An owner’s policy typically includes protection against claims from prior owners, forged signatures, unknown heirs, undisclosed encumbrances that were not in the recorded chain, improperly recorded documents, and certain mistakes in legal descriptions. If a covered claim arises, the policy can pay for defense and covered losses, subject to the terms of the policy.
Common exclusions include anything listed as an exception on Schedule B of your commitment, unrecorded easements or rights-of-way (unless insured by endorsement), zoning or building code violations, environmental conditions, and matters created after the policy date. Survey-related issues are often excluded unless you add a survey or encroachment endorsement.
Endorsements that can help
You can request endorsements to address specific risks. Common options include survey or encroachment coverage, access endorsements, zoning endorsements, environmental endorsements, mortgage gap coverage, and homestead or survivorship endorsements. Many buyers also consider the ALTA Homeowner’s Policy, which offers broader protections than older forms. Endorsements cost extra but can materially expand coverage, especially if the property has boundary quirks, a shared driveway, or access uncertainties.
Claim examples
- Can cover: You later discover a prior deed in the chain was forged, and a previous owner asserts title. The policy can defend your title and cover the claim, up to the policy amount.
- Typically not covered: A zoning rule blocks your intended use, or there is undisclosed environmental contamination, unless you purchased specific endorsements or separate coverage.
Costs and who pays in Lancaster County
Your closing will include several title-related fees:
- Title insurance premium (one-time)
- Title search and examination fees
- Settlement or closing fee
- Recording fees for deed and mortgage
- Notary and courier costs
Transfer taxes and municipal fees are separate from title insurance but are handled at closing.
Premiums are generally based on the purchase price and, for a lender policy, the loan amount. Rates and consumer disclosures are administered at the state level, and many insurers use tiered schedules. The premium is paid once at closing and the owner’s policy typically lasts for as long as you own the home.
For a typical home, the owner’s policy often ranges from several hundred to a few thousand dollars, depending on price and endorsements. Exact figures vary by insurer and property, so ask your title company for a quote.
Who pays for the owner’s policy can vary by local custom and is negotiable in the contract. In Lancaster County, practices differ across transactions. The buyer usually pays for the lender policy because it protects the lender. Confirm who pays for each policy with your agent or title company early in negotiations.
If you purchase both owner and lender policies at the same time, many insurers offer a reduced combined premium compared to buying them separately.
Local title red flags in Elizabethtown
Lancaster County’s mix of borough neighborhoods, rural parcels, and preserved farmland brings some unique title considerations:
- Agricultural conservation easements and preserved farmland that limit development and use.
- Right-of-way and shared driveways common on older or rural parcels, which can affect access and maintenance responsibilities.
- Historic deed restrictions or recorded covenants that may still be enforceable.
- Unreleased mortgages or judgment liens that must be cleared before closing.
- Probate and heir claims where ownership passed informally, making a careful chain of title review important.
- Municipal liens and code enforcement issues such as unpaid sewer or water assessments.
Practical red flags that can delay closing include missing or ambiguous legal descriptions, differences between the deed and any survey, title vesting that does not match the seller’s identity, and recorded easements that were not disclosed in the listing.
Step-by-step buyer checklist
Use this simple checklist to keep your closing on track:
Before you sign a contract
- Ask the seller or agent for any existing owner’s title policy, a recent survey, and copies of deeds or HOA documents.
- Confirm local convention for who pays the owner’s policy in Lancaster County, and negotiate it in the contract if it matters to you.
After contract ratification
- Place the title order promptly with your title company or closing attorney.
- Review the title commitment early. Focus on Schedule A (who and what is insured), Schedule B (exceptions), and the requirements to be met before closing.
- Request endorsements you might need, such as survey/encroachment, access, or zoning coverage.
Right before closing
- Verify that all liens and requirements on the commitment are cleared or will be satisfied at closing.
- Confirm the exact premium for owner and lender policies, who pays each, and the cost of endorsements in the settlement statement.
- Bring a valid ID and follow wiring instructions for any funds.
After closing
- Keep your owner’s title policy with your other closing documents. Review the policy and endorsements so you know what is covered and what is excluded.
- Store the policy securely for future reference if any claim arises.
Smart questions to ask your title company or attorney
- Who will issue the policy and who is the issuing agent?
- Will a title company or an attorney conduct closing?
- What does the owner’s policy cover for this specific property, and which endorsements are available or recommended?
- What exceptions appear on Schedule B, and how will each be resolved before settlement?
- What are the exact premiums for owner and lender policies, and who customarily pays each in this market?
- Are there known county or municipal liens, tax issues, or conservation easements affecting the property?
- How long will it take to clear any title defects found in the search?
- How do you handle claims, and what is the process for filing one?
Bottom line and next steps
For Elizabethtown buyers, an owner’s title policy is one of the simplest ways to protect your biggest asset from past problems you cannot see. Understanding how policies work in Pennsylvania, what they do and do not cover, and how local records are searched will help you negotiate with confidence and close on time. Pair that with early review of your title commitment and the right endorsements, and you will be set up for a smooth finish.
If you want a steady guide from offer to closing, our team-based approach has you covered. Connect with The John Smith Team to talk through your next steps, review your title timeline, and move forward with clarity.
FAQs
What is title insurance for Elizabethtown homebuyers?
- It is a one-time policy that protects you from covered title defects that existed before closing and can pay legal defense costs and covered losses up to the policy amount.
What is the difference between owner and lender title policies in Pennsylvania?
- A lender policy protects the lender’s mortgage interest as you repay the loan, while an owner’s policy is optional but protects your equity and ownership for as long as you own the home.
How much does an owner’s title policy usually cost in Lancaster County?
- Costs vary by price and endorsements, but many buyers see premiums from several hundred to a few thousand dollars; ask your title company for a property-specific quote.
Who typically pays for the owner’s policy in Elizabethtown?
- It depends on local custom and negotiation; the lender policy is usually paid by the buyer, and the owner’s policy is negotiable in the contract.
What endorsements should rural or older Lancaster County homes consider?
- Survey or encroachment, access, and zoning endorsements are common add-ons that can broaden coverage for boundary, driveway, or use concerns.
How long does the title search and closing process take locally?
- Many searches take several business days, but complex issues like probate, prior liens, or conservation easements can extend the timeline.
Does title insurance cover zoning or environmental issues in Pennsylvania?
- Standard policies typically exclude zoning or environmental conditions unless you add specific endorsements or secure separate coverage.
