Owner’s Title Insurance Policies, Everything You Want to Know.

An owner’s title insurance policy is protection for a homeowner against people who could try and take the deed from them.  The owner’s title policy should be purchased before closing on the property, and the policy protects homeowners from issues like clerical mistakes, liens, or money owed to contractors.  Having a policy can also protect the property owner from unknown heirs claiming the property is rightfully theirs.  There are numerous ways you could lose your house and an owner’s title insurance policy is what provides you with more security from this happening.

Now that you know what an owner’s title policy is, here are some common questions and answers you may have.  

• Is it required by law?
• What is the difference between Owner’s and Lender’s Insurance?
• Can I purchase a policy after closing?
• What does a policy cost?
• Is it the same as homeowner’s insurance?
• What does my policy protect?

Is It Required by Law?

No, you are not legally required to have an owner’s title insurance policy by law.  But it isn’t advised to go without. If someone lays claim to your property, or a mistake was made during the title search, you will more than likely be legally and financially responsible.  You may also lose your house or land.  

Is There a Difference Between Owner’s and Lender’s Policies?

The difference between the two policies is that one protects the lender if you have a mortgage, and one protects you as the homeowner.  You can learn more by reading this post about the difference between a lender’s and owner’s title insurance policy here.

Can I Buy Owner’s Title Insurance After Closing?

Yes, you can purchase a policy at any time.  But you should be aware that anything that happens in between the closing appointment and the time of purchase probably will not be covered.  You’ll have to talk to the title insurance company to find out for sure as each company is different.  

How Much Does Owner’s Title Insurance Cost?

The cost of an owner’s policy depends on the valuation and actual cost of the property at closing. Because the policy is paid in full, and at once, it does not go up or down over time, even if the value of the property you purchased fluctuates.  

Is There a Difference in Homeowner’s and Owner’s Title Insurance Policies?

The difference between homeowner’s and owner’s title insurance policies is that homeowner’s protects the items within your home, and sometimes the features on your property like a pool or a shed.  Your title insurance policy protects your ownership of the property itself. Neither are legally required, but both are highly recommended to protect your valuables and your ownership of your land and your home.  

What Does Owner’s Title Insurance Cover?

Your policy will cover everything related to the ownership of the deed.  A better way to think of this is what does your policy protect you against.  

The list can include:

• Unknown heirs and previous owners who had children out of wedlock
• Contractors who are owed money
• Liens
• Zoning issues
• Typos, writing, filing and clerical errors from previous transactions and city records
• And more.

If you have questions about owner’s title insurance policies, we’ll be happy to help with them.  Write us at info@atgtitle.com or call 703.934.2100.