By Brian Klein, Realty Biz News - If you take out a traditional loan, you are going to be required to buy title insurance for at least the value of the loan. It’s a good idea to take out a policy that includes the value of your down payment as well. Like many things regarding real estate, title insurance varies from state to state. In many states, it’ customary for the seller to purchase the title insurance policy to assure a clean title is conveyed at closing. In other states, it’s the responsibility of the buyer.