When you buy a home, title insurance shows up on your closing paperwork, and it's fair to wonder what it actually protects and whether you need it.

Here's the short version. Title insurance protects you against ownership problems from before you bought the home, like an old lien, a forged signature somewhere in the home's history, or an heir nobody knew about. If you have a mortgage, your lender will almost certainly require a lender's policy. The owner's policy, which protects you, is usually optional. Below, I'll walk through how both work, what they cost in South Carolina, and what to ask before you close.

Quick Answer

Title insurance protects you if someone later claims a right to your home based on something that happened before you bought it. There are two policies. The lender's policy protects the lender and is usually required to get a mortgage. The owner's policy protects your investment and is optional. In South Carolina you pay the premium once, at closing, and it's based on how much coverage you buy.

I've been licensed since 2006, and for more than 17 years I also owned a home improvement and contracting company. That company did new builds and fix and flips, and as an investor I've bought, renovated, and sold homes myself. Title insurance is how buyers protect themselves from ownership problems that were in place before they bought.

What Does Title Insurance Protect When You Buy a Home?

"Title" means your legal right to own the property. Before you close, a title search looks through public records for anything that could cloud that right. I explain how that works in my post on what a title search is when buying a home in Myrtle Beach.

A title search can only find what's in the records and what someone catches. Title insurance covers the gap. According to the Consumer Financial Protection Bureau, owner's title insurance protects you if someone sues and says they have a claim against the home from before you bought it.

A standard ALTA owner's policy covers risks like these (Stewart Title, ALTA Policy Comparison):

• Forgery, fraud, impersonation, or incapacity in a past transfer

• Liens or encumbrances on the title

Every policy also lists exceptions. Schedule B lists the items the title company found, investigated, and could not clear, such as easements, property taxes, or use restrictions (Old Republic Title). Before closing, read that list with your closing attorney so you know what isn't covered.

Owner's Policy vs. Lender's Policy: Which One Protects You?

The two policies protect different people.

• Lender's policy. Protects your lender against title problems. The CFPB says it is usually required to get a mortgage loan, and that it does not protect your investment in the home, meaning your equity (CFPB).

• Owner's policy. Protects you. The CFPB notes that you may want to buy one to help protect your financial investment in the home (CFPB).

If you pay cash, there is no lender's policy, so the owner's policy is the only title insurance protecting the property.

How Much Does Title Insurance Cost in South Carolina?

Title insurance underwriters file their own rate schedules, so your exact premium comes from the underwriter and closing attorney you use. For general numbers, here's what one national underwriter's filed South Carolina schedule works out to (Stewart Title Guaranty Company, South Carolina Rate Manual, effective December 28, 2022):

• Owner's Policy, $300,000 of coverage: about $750

• Owner's Policy, $400,000 of coverage: about $960

• Owner's Policy, $600,000 of coverage: about $1,350

• Lender's Policy issued at the same time as the owner's policy: $100 (simultaneous issue charge)

• Enhanced (Homeowner's) Policy: 120% of the standard rate, about $1,152 on $400,000 of coverage

Those figures are the insurance premium only. Your title search, the attorney's closing fees, and any added coverage (called endorsements) are separate. For the bigger picture, see my breakdown of closing costs when buying a home in Myrtle Beach.

Why the Numbers on Your Loan Estimate May Look Different

When you apply for a mortgage, your Loan Estimate lists the owner's policy as "Title - Owner's Title Policy (optional)." Federal disclosure rules also require the lender's policy to be shown at its full price, even when you're getting the $100 simultaneous rate. The discount then shows up as a lower owner's policy figure (CFPB TRID Title Insurance Disclosure Factsheet).

So the line items on your Loan Estimate may not match the title quote, but the totals should. The CFPB says that if you add up all the title-related costs your title company gives you, the total should match the title-related costs on your Loan Estimate or Closing Disclosure (CFPB). Compare totals, not individual lines.

Standard or Enhanced Owner's Policy?

South Carolina rate schedules include both a standard owner's policy and an enhanced policy, often called the ALTA Homeowner's Policy (Stewart Title SC Rate Manual). According to Stewart Title's ALTA policy comparison, the Homeowner's Policy adds coverage that includes:

• Mechanic's liens and unrecorded easements

• Certain forgery or impersonation affecting your title after the policy is issued

• Certain building permit and zoning violations

• An automatic increase in the policy amount, up to 150% over 5 years

A mechanic's lien is a claim a contractor or supplier files when they aren't paid for work on a property. Ask your closing attorney whether the enhanced policy is available for your home and what its limits and conditions are, since that depends on the property and the policy form.

Who Pays for Title Insurance in Myrtle Beach?

It comes down to your purchase contract. On the South Carolina REALTORS residential purchase contract (Form 310, June 2025 version), the buyer's transaction costs include costs from the financing the buyer chooses and the title exam. The seller's transaction costs include what it takes to deliver marketable title, such as paying off mortgages and liens.

Your agent and closing attorney can show you exactly where title insurance falls in your contract. If you want to know how this looks from the other side of the table, here's my post on title insurance for sellers.

Why Your Closing Attorney Matters Here

South Carolina handles closings differently from many states. The South Carolina Supreme Court has held that performing a title search, preparing title and loan documents, and closing a loan without an attorney's supervision is the unauthorized practice of law (Matrix Financial Services Corp. v. Frazer, 2011).

That makes your closing attorney your go-to person for title questions. Ask them for a title insurance quote, the difference between the standard and enhanced policies, and an explanation of any Schedule B exceptions before you sign.

What If a Problem Shows Up After You Close?

One of the agents on our team worked with a buyer who, about a year after closing, got a notice saying the home was headed to auction. You can imagine how frightening that was. The buyer called their closing attorney, and the issue was cleared up.

If you ever get a notice like that, here's what I'd do:

1. Don't ignore it. Read it carefully and note any deadlines.

2. Call your closing attorney. They have your closing file, your title search, and your policy information.

3. Find your owner's policy. Your policy explains how to give notice of a claim and what you'll need to show (Old Republic Title).

4. Contact the office that sent it. In Horry County, past-due property taxes are handled by the Treasurer's Delinquent Tax Department, (843) 915-5472.

For context on that last step, Horry County considers taxes delinquent after March 17 and mails delinquent notices around April 1. The tax sale is held in November, and after a sale the law allows 12 months for the owner, mortgage company, or grantee to pay the taxes and costs (Horry County Treasurer).

Keep in mind that an owner's policy is designed for claims from before you bought the home. Taxes and bills that come due while you own it are your responsibility, so keep your property tax records current.

Is Owner's Title Insurance Required in South Carolina?

No, the owner's policy is optional. It's labeled "(optional)" on your Loan Estimate (CFPB). The lender's policy is usually required if you're getting a mortgage (CFPB).

Is Title Insurance a Monthly Payment?

No. It's paid as part of your closing costs, not billed monthly like homeowners insurance. The premium is based on the amount of coverage (Stewart Title SC Rate Manual).

Can I Shop for Title Insurance?

Often, yes. The CFPB says you can usually shop for your title insurance provider separately from your mortgage, and that buying the lender's and owner's policies from the same company typically costs less (CFPB). Your Loan Estimate tells you which services you're allowed to shop for.

Does a Title Search Make Title Insurance Unnecessary?

No, they work together. The title search looks for problems before closing, and title insurance protects you from covered problems that turn up afterward. You can learn more in my post on what a deed is when buying a home, which is the document that transfers ownership to you.

Final Thoughts

Title insurance is easy to skip past in a stack of closing papers, but it protects one of the biggest purchases you'll make. Know which policy protects you, ask your closing attorney about standard vs. enhanced coverage, and compare totals on your Loan Estimate instead of individual line items.

If you're still house hunting, you can browse homes for sale across Myrtle Beach and the Grand Strand. And if you'd like to go through the closing costs on a home you're considering, book a quick Zoom call with me and we'll take it one line at a time.

The information in this article is for general educational purposes and is not legal, tax, or financial advice. Market conditions change, so please confirm details with the appropriate professional before making decisions. Beach Properties Group, Keller Williams Innovate South, 601 21st Ave N, Myrtle Beach, SC 29577, (843) 443-9400. Each office is independently owned and operated. Equal Housing Opportunity.

Brian Staub is a real estate agent in Myrtle Beach, South Carolina helping people buy with clarity and confidence.

Brian Staub Beach Properties Group Keller Williams 601 21st Ave N, Myrtle Beach, SC 29577 (843) 385-6630 [email protected] https://beachpropertiesgroup.com/