Owner’s title insurance is meant to protect your ownership interest in your home. Subject to the terms of your policy, owner’s title insurance protects you against losses incurred due to any title defects that existed prior to the purchase of your home. Your owner’s title policy offers insurance protection for as long as you own your home. To the extent of the matters covered in the policy, an owner’s title insurance policy will protect you in the event a legal challenge is made to the ownership of your home.

If you’re buying a home, title insurance is a policy that protects your investment and property rights. There are two different types of title insurance: owner’s policy and lender’s policy.

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Type 1: An owner’s policy protects your property rights for as long as you own the home.

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Type 2: A lender’s policy is usually required by the lender and protects only the lender’s financial interests. The buyer typically pays for this policy, but this varies depending on geography. We recommend you ask an ALTA member how it’s handled in your area.

As property changes hands, mistakes and irregularities – often made long before you expressed interest in the property – can place your ownership in dispute. The seller may have:
• Avoided disclosure of using the property as collateral for an unpaid loan.
• Fraudulently claimed to be the sole owner.
• Failed to pay real estate taxes.
Even a simple mistake in the recording of legal documents, improper execution of legal instruments or the reappearance of undisclosed or missing heirs could result in the loss of your home.

A title search is a standard part of the home buying process that is conducted to uncover issues that could prevent your right to the property. Your closing agent reviews public records to see if there are problems or defects that could cause you legal issues.

Purchasing owner’s title insurance is a smart decision because it’s the best way to protect your property from future legal claims.

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Your policy may cover:
1. Forgery of a covered document
2. Fraud in the execution of a deed or other covered document
3. Undue influence exercised over the grantor of a deed
4. False impersonation by someone purporting to be the owner of the property
5. Undisclosed or missing heirs
6. Wills not properly probated
7. Misinterpretation of wills and trusts
8. Mental incompetence of a grantor of a deed
9. Transfer of title by a minor
10. Heirs born after the execution of a will
11. Incorrect legal descriptions
12. Non-delivery of deeds
13. Deeds executed under expired or false powers of attorney
14. Confusion due to similar or identical names
15. Dower or curtesy or homestead rights of spouses of former owners
16. Incorrect indexing of the land records
17. Clerical errors in recording legal documents
18. Delivery of deeds after the death of the Grantor

Your owner’s insurance policy lasts as long as you own your property. Your life will change over time, but your peace of mind never will.