What is owner policy of title insurance

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What is Owner Policy of Title Insurance?

The owner policy of title insurance is a crucial aspect of protecting homeowners’ interests. This coverage ensures clear ownership and provides financial security against potential risks. By understanding the purpose and benefits of an owner policy, homeowners can make informed decisions and mitigate potential legal and financial issues related to their property’s title. Discover the importance of this policy and how it secures your homeownership rights.

What is owner policy of title insurance

Title Insurance

Title insurance is a crucial aspect of real estate transactions that offers protection to both buyers and lenders against potential risks and financial loss. When it comes to title insurance, one type that homeowners should be aware of is the owner policy. In this article, we will delve into the details of owner policy of title insurance, its significance, and the benefits it offers.

Understanding Title Insurance

Before we explore the owner policy, let’s quickly understand what title insurance entails. Title insurance is a form of indemnity insurance that safeguards the legal ownership of a property. It provides protection against any defects, encumbrances, or claims on the property’s title that may arise in the future. By purchasing title insurance, homeowners and lenders can mitigate potential risks and secure their investment in real estate.

Owner Policy of Title Insurance

An owner policy, also known as an owner’s title insurance policy, is specifically designed to protect the homeowner’s interests in the property. This policy offers coverage for the full purchase price or the property’s current market value, depending on the policy’s terms and conditions. The owner policy provides assurance that the title is clear, marketable, and free from any hidden issues or defects that could threaten the homeowner’s ownership rights.

The owner policy not only provides financial protection but also covers the costs incurred for legal defense against any claims made against the title. This means that if someone challenges the homeowner’s ownership rights in court, the title insurance company will bear the legal expenses required to defend the homeowner’s title.

Benefits of Owner Policy

Purchasing an owner policy of title insurance comes with several benefits that offer peace of mind to homeowners. Firstly, it protects against financial loss in case of unforeseen defects in the title, such as forged documents, undisclosed heirs, or errors in public records. The policy covers the homeowner’s investment, ensuring that they are not left financially vulnerable due to a defective title.

Secondly, the owner policy covers the expenses incurred in resolving title issues. Legal disputes related to ownership can be time-consuming and expensive. With an owner policy, the title insurance company bears the burden of these costs, sparing the homeowner from significant financial strain.

Moreover, an owner policy ensures clear ownership and helps homeowners avoid potential complications when selling or refinancing their property. The policy offers a thorough title search and examination process before issuing the policy, ensuring that all potential risks are identified and resolved upfront.

Obtaining Owner Policy

To obtain an owner policy of title insurance, homeowners typically go through a series of steps. The process starts with a title search and examination conducted by a qualified professional, such as a title company or attorney. This examination verifies the property’s ownership history, identifies any existing liens or claims, and ensures that the title is clear.

Once the title search is complete and any potential issues are resolved, the closing process takes place. During the closing, the owner policy is issued, and the homeowner pays a one-time premium for the coverage. It is important to note that the owner policy is typically valid as long as the homeowner or their heirs maintain ownership of the property.


In conclusion, the owner policy of title insurance plays a crucial role in protecting homeowners’ interests and investment in real estate. By offering coverage against potential title defects, financial loss, and legal expenses, the owner policy provides homeowners with peace of mind and assurance of clear ownership. When engaging in real estate transactions, it is essential for homeowners to consider obtaining an owner policy to safeguard their property rights and mitigate risks.


1. Is title insurance necessary for homeowners?

Title insurance is not legally required for homeowners, but it is highly recommended. Without title insurance, homeowners may be exposed to significant financial risks if any defects in the title surface later.

2. Can I purchase title insurance after buying a property?

Yes, it is possible to purchase title insurance after buying a property. However, it is advisable to obtain it during the closing process to ensure immediate protection against potential title defects.

3. Does title insurance cover all types of title issues?

Title insurance covers a wide range of title issues, including forged documents, undisclosed heirs, liens, encumbrances, and other defects. However, it is essential to review the policy and its terms to understand the specific coverage provided.

4. Can I transfer my owner policy to a new homeowner?

Owner policies are typically non-transferable. If you sell your property, the new homeowner will need to purchase their own owner policy to secure their interests.

5. How much does an owner policy of title insurance cost?

The cost of an owner policy varies depending on factors such as the property’s value, location, and the insurance provider. The premium is typically a one-time payment made during the closing process and is based on the property’s purchase price or its current market value.

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