Buying a home is one of the most significant financial moves most Iowans will ever make. With that kind of investment, you want to be sure the property is truly yours and that no one else can come with a legal claim against it. In Iowa, we don’t use title insurance to protect buyers. Instead, we have something better suited to our system: Iowa Title Guaranty.
Iowa Title Guaranty, run by the state, provides protection similar to title insurance—but it’s simpler, faster, and much more affordable. If you’re buying a home, here’s why this program matters and how it protects you.
Iowa’s Title Process and Why Guaranty Matters
Iowa is an abstract state, which means every property has a physical abstract—a written record of all ownership and title activity over time. Before closing on a property, an attorney updates and reviews that abstract and issues a title opinion, a legal assessment of the title’s condition.
Once the owner clears any issues, the attorney can request coverage from Iowa Title Guaranty. This state-run entity backs the title and protects the owner from certain future claims. It’s not title insurance, but it functions similarly. However, because the state runs it (and because it’s not a for-profit insurance company), the cost is much lower (typically $175 for sales prices up to $750,000.). The claims processes are designed to keep real estate deals moving, not stalled.
Lenders in Iowa require Iowa Title Guaranty instead of title insurance. That’s because title insurance cannot be sold in Iowa under Iowa Code § 515.48(10), which prohibits “insurance against loss or damage by reason of defective title, encumbrance, or otherwise.” Additionally, Iowa Code § 535.8(4)(b) allows for Iowa Title Guaranty as a valid charge in mortgage transactions, reinforcing the state’s preference for this model. In short, buyers can’t be charged for title insurance in Iowa, so the Title Guaranty program fills that gap and does it well.
What It Means for You as a Homeowner
Most people think of title issues as a concern during the purchase. But problems can appear later, especially when it’s time to sell. Let’s say you go to sell your home a few years after buying it. If the buyer’s attorney finds a title issue that wasn’t flagged before, that could hold up the sale and leave you with additional, unexpected expenses to resolve it.
With Iowa Title Guaranty in place, you’re protected. The program will review the issue and, in most cases, allow the transaction to move forward while it processes the claim. You won’t have to wait six months for a traditional insurance company to investigate and approve coverage. The ITG Final Certificate allows you to sell your property quickly and confidently.
Because Iowa Title Guaranty’s model is built on resolving claims rather than avoiding them, it moves faster and is more aligned with the buyer's and seller's interests. That peace of mind, plus the protection against the unknown, is what makes it so valuable.
And at just $175, it’s a no-brainer—especially when you’re buying a $300,000 or $500,000 home. For a fraction of what title insurance would cost in other states, you’re covered from day one all the way through to your eventual sale. To learn more about how it works, visit the official site for Iowa Title Guaranty.
Buying or selling property in Iowa? You don’t have to figure it out on your own. Danilson Law helps buyers understand the title process and secure the proper protection through Iowa Title Guaranty. If you want your transaction handled accurately and with your long-term ownership in mind, we’re here to help.