When buying a home, protecting your property rights should be a top priority. Discover how a one-time payment for owner’s title insurance can safeguard your investment for as long as you or your heirs own the property. Learn about real-life title problems that could put your property at risk.

Why You Need an Owner's Policy

While lenders require title insurance to protect their investment, homeowners often overlook the need for their own protection. For a one-time fee at closing, an owner’s title insurance policy shields you from potential risks like unpaid property taxes, mortgages, or claims by missing heirs. It ensures your property rights are secure as long as you own the home.

What Title Insurance Protects You From

An owner’s policy safeguards your property rights by covering:

• Unpaid mortgages or taxes
• Child support liens
• Hidden easements affecting property use
• Fraud and forgery in prior documents
• Claims from undiscovered heirs

Unlike a lender’s policy, which only covers the loan, an owner’s policy offers lifelong protection for you and your heirs.

Real-Life Title Issues: Fraud and Easements

Imagine buying your dream home, only to find an underground utility line prevents you from building that backyard pool. Or worse, discovering a previous fraud in the property’s title, leaving you entangled in legal battles. With an owner’s policy, these issues are covered—saving you from financial and legal troubles.

Title Insurance: Cost and Coverage

Title insurance is a one-time fee based on the value of the home, typically ranging between 0.5% and 1% of the purchase price. It also covers legal fees should your property rights be challenged. While practices vary by state, both buyers and sellers may share the cost, and discounts can be available when purchasing both owner’s and lender’s policies.

Title Search and Filing a Claim

Before issuing a policy, title professionals conduct a thorough search of public records to uncover potential issues. If problems arise after your purchase, filing a claim is easy—simply contact the title insurer listed on your policy. They will defend your rights and settle any valid claims.

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