Buying a home in Chesterton should feel exciting, not confusing. Yet one small line on your closing costs can raise big questions: title insurance. You want to be sure your investment is protected and your closing goes smoothly. In this guide, you’ll learn what title insurance covers, how it works in Indiana, local Porter County red flags to watch, and the simple steps to take before you close. Let’s dive in.
What title insurance covers
Title insurance protects you from past problems tied to a property’s ownership that were missed before closing. Common covered issues include:
- Undisclosed liens, unpaid taxes, or special assessments
- Forged signatures or incorrect paperwork in the chain of title
- Mechanics’ liens from prior work on the home
- Unknown heirs or errors in public records
- Boundary or access problems identified in public records
Unlike homeowners insurance, which covers future events, title insurance deals with past events that could threaten your rights. Coverage typically lasts for as long as you own the home.
Owner’s vs lender’s policy
- Lender’s policy: Protects the lender’s mortgage amount. Your lender will usually require this, but it only covers the lender.
- Owner’s policy: Protects your equity and legal ownership. It is optional, but strongly recommended, because the lender’s policy does not protect you.
Both policies are usually purchased with a one-time premium at closing. One payment provides long-term protection for the period you own the property.
Title endorsements to consider
Standard policies list “exceptions,” which are items not covered. You can add endorsements to cover specific risks that matter for your property. Common options include:
- Survey or boundary endorsements
- Zoning and legal access endorsements
- Condominium endorsements
- Environmental lien endorsements
Availability and wording vary by insurer and state. Ask your title company which endorsements fit your Chesterton property and your plans for it.
Indiana and Chesterton basics
State regulation and disclosures
Title insurers in Indiana are regulated by the Indiana Department of Insurance. If you are getting a mortgage, federal rules require a Closing Disclosure that shows your final title and closing costs. You should receive this disclosure at least three business days before closing.
Porter County records that affect title
Title companies search Porter County public records for deeds, mortgages, liens, and easements. Key local offices include the Recorder, Assessor, and Treasurer. The search can reveal items like utility or municipal liens, unpaid property taxes, subdivision covenants, or HOA restrictions.
Local physical and environmental factors
Chesterton sits near Lake Michigan and the Indiana Dunes. Some parcels may be in mapped flood zones or near wetlands, conservation areas, or rail corridors. These factors may create use restrictions or disclosures. They do not automatically create title defects, but they can affect your use of the property and may appear as title exceptions or require endorsements.
Chesterton title process
- Offer accepted and title is ordered. Your agent or lender requests a title search and commitment from a title company or attorney.
- Records review. The title company checks the Recorder, courts, tax offices, and other public records for encumbrances, liens, and chain of title issues.
- Title commitment. You receive a report listing exceptions and requirements that must be cleared before a final policy can be issued.
- Clearing issues. The seller or closing agent handles payoffs, releases, or corrective documents.
- Closing and policy issuance. Funds are disbursed, documents are recorded with the Porter County Recorder, and your policies are issued.
Who handles closing in Indiana
In many Indiana transactions, a title company acts as the settlement agent. Attorneys may also be involved. Your lender will require a lender’s policy. You can typically order the owner’s policy at the same time.
Timing and your Closing Disclosure
For most financed purchases, you must receive your Closing Disclosure at least three business days before closing. Review it alongside your title commitment so you can request any needed endorsements or additional searches early.
Who pays for title insurance
Customs vary across Indiana. In some deals, the buyer pays for both policies. In others, the seller pays for the owner’s policy. This is negotiable, so confirm in your purchase agreement and on the closing statement.
Porter County red flags to watch
- Outstanding mortgages, judgments, tax liens, or HOA assessments
- Mechanics’ liens from prior renovations or repairs
- Unreleased prior mortgages or errors in the chain of title
- Easements or rights-of-way that limit use or access, including rail or utility corridors
- Boundary disputes or plat inconsistencies, especially with older legal descriptions
- Floodplain or environmental restrictions that affect use or insurance requirements
- Special assessments for local improvements like sidewalks or sewer projects
- Probate, bankruptcy, or trust-related authority issues
If you see unusual exceptions on the title commitment, ask the title company to explain them. Consider involving an attorney for complex issues.
Buyer checklist before closing
- Confirm an owner’s policy in addition to the lender’s policy
- Review every exception in the title commitment
- Order a current survey or request a survey endorsement
- Verify tax status and any special assessments with county offices
- Obtain and review HOA documents and dues status, if applicable
- Check flood zone status and whether flood insurance is required or advisable
- Ask for a line-item estimate of title-related fees and premiums
- Confirm who is paying for the owner’s policy in the purchase agreement
- Verify the closing agent, wiring instructions, and policy delivery timeline
Questions to ask your title company
- What exceptions are listed, and how will each be cleared?
- Which endorsements do you recommend for this property in Chesterton?
- Will your search include municipal and utility liens or code issues?
- What are the estimated one-time premiums for the owner’s and lender’s policies?
- Who will handle recording and disbursement, and when will my final policies be issued?
- If a defect is found, how will you cure it and how long will it take?
How Simplify Your Move Realty supports you
You deserve a smooth, predictable closing. Our systems-first approach helps you order title work early, review the title commitment, and address exceptions before they become last-minute surprises. We coordinate with the title company, keep you on timeline for disclosures, and guide you on negotiating who pays for the owner’s policy.
Whether you are a first-time buyer or moving up, our local experience in Northwest Indiana means you get clear answers and steady support from contract to keys. Have questions about endorsements, surveys, or municipal assessments in Porter County? We’ll help you ask the right questions and stay confident through closing.
Ready to protect your purchase and keep your closing on track? Connect with the team at Simplify Your Move Realty.
FAQs
What is title insurance for a Chesterton home purchase?
- Title insurance protects you from past ownership defects like liens, recording errors, or forged documents that could affect your legal rights after closing.
Do I need an owner’s policy if my lender requires one?
- Yes, the lender’s policy only protects the lender. An owner’s policy protects your equity and legal ownership for as long as you hold the property.
Who typically pays for title insurance in Indiana?
- It varies by deal and is negotiable. In some transactions buyers pay for both policies, while in others sellers pay for the owner’s policy. Confirm it in your contract.
What endorsements are common in Porter County, Indiana?
- Survey or boundary, zoning and access, condominium, and environmental lien endorsements are commonly considered based on property type and location.
Does a flood zone affect my title insurance in Chesterton?
- Flood zones do not automatically create a title defect, but flood-related restrictions or disclosures may appear as exceptions and can affect your use or insurance needs.
Who handles closing and settlement in Indiana?
- Title companies commonly act as settlement agents, though attorneys may be involved. The lender’s policy is required for most mortgages, and you can add an owner’s policy at closing.
