How are title insurance premiums typically paid?

Title insurance premiums are typically a one-time payment made at the closing of a real estate transaction. This is because title insurance protects the buyer and the lender from potential financial loss due to defects in the title, and the premium covers the risk associated with that protection for the entirety of the policy's duration.

The specifics of transactions and the nature of real estate purchases make a single, upfront payment practical and efficient; it avoids the complexity of ongoing payments often associated with other types of insurance. Once the payment is made at closing, the policy remains in force for as long as the insured party or their heirs have an interest in the property—thus providing lasting protection without the need for renewals or monthly payments.

While other payment options like monthly installments, annual payments, or quarterly payments might be common in other types of insurance, they do not apply to title insurance due to its structure and purpose.