Owner's title insurance is a policy that protects the property buyer's equity and ownership rights against title defects, hidden liens, and other covered claims that were not discovered during the title search. While lender's title insurance (required by the bank) only protects the mortgage lender's financial interest, the owner's policy protects YOU — the homeowner — and your full investment in the property.
Owner's title insurance is a one-time purchase, paid at closing, that provides coverage for as long as you or your heirs have an interest in the property. Unlike other insurance that protects against future events, title insurance protects against past events — defects and claims that already exist but have not yet been discovered. The policy amount typically equals the purchase price and does not decrease over time (unlike the lender's policy, which decreases as the mortgage is paid down).
Covered risks include: forged or fraudulent deeds in the chain of title, undisclosed heirs who may claim ownership, recording errors at the county office, unpaid liens that were not found during the title search, improperly executed documents, identity theft or impersonation of the true owner, missing or defective notarizations, and incorrect legal descriptions. The title insurance company pays for both legal defense and any financial losses from covered claims.
While not legally required (unlike lender's insurance), owner's title insurance is one of the most valuable protections a buyer can purchase. The cost is modest — typically $1,000 to $3,000 for a standard residential property (varies by state and purchase price) — and it provides lifetime protection. Many buyers purchase simultaneously with the lender's policy to receive a discounted "simultaneous issue" rate, making the owner's policy even more affordable.
At Beycome Title, we strongly recommend owner's title insurance for every buyer and provide competitive rates backed by Old Republic National Title Insurance Company. Our closing cost calculator shows the exact premium for your purchase price. We can also explain the available endorsements that enhance your coverage for specific risks. Protect your investment — get your free title quote today. Learn more about title insurance in our comprehensive guide.