Should You Buy an Owner’s Title Insurance Policy?

When purchasing a home, you will be faced with the decision of whether or not to purchase Owner’s Title Insurance.  If you are financing the mortgage, you will be required to purchase Title Insurance that protects the mortgage company for any title claims.  However, it is an optional decision for the new owner.

The purpose of owner’s title insurance is to provide the buyer of real property a guarantee of ownership.  A lender involved in a transaction will require sufficient title insurance to cover the amount of its loan.  The lender’s title insurance policy will cover any equity you might be applying towards the purchase of the property, such as down payment contributions.

Since title has already been run for the lender’s title insurnce, the purchaser can realize a cost savings by purchasing an owner’s polity at closing at the same time.  It is a one-time fee for coverage that will endure the length of your ownership of your home.  It can provide coverage for certain title claims against your property and also pay associated attorney’s fees for clearing any such title matters.

Your closing attorney can provide the title insurance through one of several reputable title insurance companies.  This is a separate fee from the attorney’s fees or title examination costs.  The premium is based on the cost of your home or property.

You are always welcome to speak directly with the closing attory should you have additional questions about the benefits and cost of title insurance.