Owner's Title Insurance: 15 Vital Questions Answered

When you buy a home, you're not just buying the house itself. You're also buying the land it sits on, and the rights to use that land. That's where title insurance comes in.

Title insurance is a type of insurance that protects you against financial loss if there are any problems with the title to your property. For example, if it turns out that there is a lien against your property that you didn't know about, title insurance can help you pay off the lien and protect your ownership of the property.

Do I need owner's title insurance?

In most cases, yes. Lenders typically require borrowers to purchase title insurance as a condition of the loan. However, it's a good idea to get title insurance even if you're not required to. It's a relatively small investment that can protect you from a lot of financial risk.

What does owner's title insurance cover?

Owner's title insurance covers a wide range of potential problems with the title to your property, including:

• Liens: A lien is a claim against your property that gives the claimant the right to sell your property to satisfy the debt. Liens can arise from unpaid taxes, unpaid mortgages, or other debts.
• Judgments: A judgment is a court order that requires you to pay money to someone. If you don't pay the judgment, the creditor can get a lien against your property.
• Easements: An easement is a right to use someone else's property for a specific purpose. For example, a neighbor may have an easement to cross your property to get to their own property.
• Encroachments: An encroachment is a structure that is built on your property without your permission. For example, a neighbor may have built a fence that encroaches on your property line.
• Forgery: Forgery is the act of signing someone else's name without their permission. If someone forges your name on a deed, they could transfer ownership of your property to themselves.
• Fraud: Fraud is the act of deceiving someone into doing something they wouldn't otherwise do. If someone defrauds you into selling your property, you could lose your ownership of the property.

How much does owner's title insurance cost?

The cost of owner's title insurance varies depending on the value of your property and the location of the property. However, you can expect to pay between $500 and $1,000 for a policy.

How can I get owner's title insurance?

You can get owner's title insurance from a title insurance company. When you apply for a policy, the title insurance company will search the public records to look for any potential problems with the title to your property. If the title insurance company finds any problems, it will issue you a policy that will protect you against financial loss if those problems arise.

What are the benefits of owner's title insurance?

Owner's title insurance provides a number of benefits, including:

• Peace of mind: Knowing that you're protected against financial loss if there are any problems with the title to your property can give you peace of mind.
• Financial protection: Title insurance can help you pay off liens, judgments, and other debts that could threaten your ownership of the property.
• Coverage for hidden defects: Title insurance can cover problems with the title to your property that you didn't know about when you bought the property.
• Protection against fraud: Title insurance can protect you against financial loss if someone defrauds you into selling your property.

What are the drawbacks of owner's title insurance?

There are a few drawbacks to owner's title insurance, including:

• Cost: Title insurance can be expensive, especially for high-value properties.
• Coverage limitations: Title insurance doesn't cover all potential problems with the title to your property. For example, it doesn't cover zoning violations or environmental contamination.
• Time delays: It can take several weeks to get a title insurance policy issued. This can be a problem if you're closing on a property soon.

Overall, owner's title insurance is a good investment that can protect you from a lot of financial risk. However, it's important to weigh the benefits and drawbacks of title insurance before you decide whether or not to purchase a policy.

How to Find the Right Owner's Title Insurance Company

When you're shopping for owner's title insurance, it's important to compare prices and coverage from different title insurance companies. You should also ask for recommendations from your real estate agent, lender, or attorney.

Here are some factors to consider when choosing a title insurance company:

• Reputation: Choose a title insurance company with a good reputation for customer service and financial stability.
• Coverage: Make sure the title insurance company offers the coverage you need.
• Price: Compare prices from different title insurance companies before you make a decision.
• Convenience: Choose a title insurance company that is convenient for you to work with.

What to Do If You Have a Problem with Your Owner's Title Insurance Policy

If you have a problem with your owner's title insurance policy, you should contact the title insurance company immediately. The title insurance company will investigate the problem and determine whether it is covered by your policy.

If the title insurance company determines that the problem is covered by your policy, it will take steps to resolve the problem. This may involve paying off liens, judgments, or other debts, or defending you in court.

Frequently Asked Questions About Owner's Title Insurance

Q: What is the difference between an owner's title insurance policy and a lender's title insurance policy?

A: An owner's title insurance policy protects the homeowner from financial loss if there are any problems with the title to the property. A lender's title insurance policy protects the lender from financial loss if there are any problems with the title to the property.

Q: Do I need both an owner's title insurance policy and a lender's title insurance policy?

A: In most cases, yes. Lenders typically require borrowers to purchase a lender's title insurance policy as a condition of the loan. However, it's a good idea to get an owner's title insurance policy even if you're not required to. It's a relatively small investment that can protect you from a lot of financial risk.

Q: Who pays for owner's title insurance?

A: In most cases, the buyer pays for owner's title insurance. However, the seller may agree to pay for owner's title insurance as a concession in the sale.

Q: How long does an owner's title insurance policy last?

A: An owner's title insurance policy lasts for as long as you own the property.