Owners Title Insurance
Owner’s title insurance is sometimes referred to as home buyer’s insurance. Title insurance for buyers is optional, but highly recommended. Owner’s title insurance helps you protect what is perhaps your biggest investment – your home.
The owner’s title insurance policy is purchased at closing. In the event someone challenges the title, based on a situation covered in your policy, the title company will establish a clear title or pay for defending against the challenge, either clearing the title or paying to cover the costs in a case of a valid claim.
There are two types of buyer’s or owner’s title insurance policies certified by the American Land Title Association® – the Owner’s policy and the Homeowner’s policy.
The Owner’s Policy is the standard title insurance policy that protects you from defects and liens in the title history of your home up to and including the date and time your deed is recorded in the public records. The Owner’s Policy typically costs one half to one percent of the total purchase price of the property, and is a one-time cost, paid at the time of closing. The title insurance policy is good for the entire time that you and your heirs own the property,
This policy protects you from such things as:
- Unpaid mortgages
- Unpaid taxes
- Liens from a subcontractor
- Child support liens
- Missing heirs who could claim the property belongs to them
- Missed easements or rights of way that could limit the use of your property
The Homeowner’s Policy is a more comprehensive title insurance policy that provides coverage for additional risks, including some that might occur after the deed was recorded. Of course, since it provides coverage against more types of loss, the Homeowner’s Policy comes at a higher cost. You may want to review the coverages and pricing of the two types of policies before making your decision which policy is best for you.