Understanding the Owner Policy of Title Insurance

When you purchase a property, either residential or commercial, you want to ensure that you have clear ownership of the property. Title insurance is designed to protect property buyers and mortgage lenders from financial loss due to title defects or liens against the property.

In this article, we will look at the owner policy of title insurance, its coverage, benefits, and the importance of having it in place.

What is Owner Policy of Title Insurance?

The owner policy of title insurance is a type of title insurance that protects the property owner from financial loss due to title defects or issues that arise with the property after it has been purchased. This policy is usually purchased alongside a mortgage loan policy to protect both the lender and the property owner.

The owner policy of title insurance is different from the lender policy in terms of coverage. While the lender policy only covers the amount of the loan, the owner policy covers the total value of the property, including improvements made to it, and any legal fees incurred while defending the property owner’s right to ownership.

What Does Owner Policy Cover?

The owner policy of title insurance covers various issues that may arise with the property title. These include:

What are the Benefits of Owner Policy?

The owner policy of title insurance provides a range of benefits to the property owner. These include:

• Protection against financial loss due to title defects or disputes
• Peace of mind knowing that your property ownership is secure
• Legal representation and reimbursement of legal fees if a dispute arises
• Transferable policy, which means the policy can be transferred to a new owner if the property is sold

How to Obtain Owner Policy?

To obtain owner policy of title insurance, you need to contact a licensed title insurance agent or attorney. They will review the property title history to ensure that there are no title defects or issues that may arise in the future. Once the title is clear, the agent will issue the policy.

The cost of owner policy of title insurance varies depending on the state, property value, and policy coverage. It is usually a one-time fee paid at the time of closing or settlement.

FAQs

Is Owner Policy of Title Insurance Required?

No, owner policy of title insurance is not required by law. However, it is highly recommended to protect your investment and ensure clear ownership of the property.

How Long Does Owner Policy of Title Insurance Last?

Owner policy of title insurance lasts as long as you own the property. It is a one-time fee paid at the time of closing and does not require any further payments or renewals.

Can Owner Policy of Title Insurance Be Transferred?

Yes, owner policy of title insurance is transferable. If you sell your property, the policy can be transferred to the new owner, providing them with the same protection and benefits.

What Happens if a Title Issue Arises?

If a title issue arises after the purchase of the property, the owner policy of title insurance will provide legal representation and reimburse any legal fees incurred while defending the property owner’s right to ownership.

Can I Purchase Owner Policy of Title Insurance After Closing?

Yes, you can purchase owner policy of title insurance after closing, but it may be more expensive than purchasing it at the time of closing. It is always recommended to obtain the policy at the time of closing to protect your investment from any future title issues.

Conclusion

The owner policy of title insurance is a crucial aspect of protecting your investment and ensuring clear ownership of the property. It provides a range of benefits to the property owner, including protection against financial loss, peace of mind, and legal representation in case of disputes. It is always recommended to obtain the policy at the time of closing to ensure the property title is clear and free from any defects or issues.