An owner’s title insurance policy protects the owner in the event ownership and/or rights to a property are challenged. Unlike a lender’s policy whose value declines over time, the owner’s policy will always insure the equity up to the purchase price of the home. A separate Market Value Rider is available as well which will keep pace with inflation providing coverage for the future value of the property.
An owner’s policy protects you as long as you own your home for a one-time premium paid at closing. If a claim occurs, the underwriter that issues the policy will provide you with free legal defense and reimbursement if the defense fails.
The biggest misconception is that the lender’s policy is all you need. Unfortunately, the lender’s policy only covers the lender and is always decreasing in value as the mortgage is paid down. Many attorneys encourage their clients to purchase the owner’s policy, especially since there is a significant discount when both are purchased simultaneously.
Real Estate, to most of our clients, will represent the largest investment of time and money in their lifetime. A claim against their property rights could be financially devastating. Title insurance provides protection from these potential losses. Our team works diligently to ensure clean title and provides our clients with an insurance policy to protect against unforeseen issues in the future.