Every homebuyer needs owner's title insurance because it protects your ownership rights and equity against hidden title problems that a search cannot always uncover, such as forgery, fraud, unpaid liens, and unknown heirs. For a one-time fee of roughly 0.5% of the purchase price, it covers you and your heirs for as long as you own the home.
Key facts
- Owner's title insurance is a one-time fee, typically around 0.5% of the home's purchase price.
- More than 80% of America's homebuyers choose to get an owner's policy each year.
- Coverage lasts as long as you or your heirs own the property.
- Title Resources Inc. is locally owned, has served clients since 2005, and holds a 5.0 Google rating across 92 reviews.
1. Does it protect your largest investment?
A home is probably the single largest investment you will ever make. You insure your life, car, health, and personal property, so it makes sense to protect your home the same way. For a one-time fee, owner's title insurance protects your property rights for as long as you or your heirs own the home.
2. How does it reduce your risk?
Many hidden issues can surface after you buy a home, and an owner's policy protects you from legal title discrepancies. According to the American Land Title Association, title professionals find and fix issues in roughly one in three transactions. Below are common claims an owner's policy defends against.
Unforeseeable title claims include:
- Forgery: a false document, such as a seller misrepresenting the identity of the person selling the property.
- Fraud: deception for unfair gain, such as someone stealing your identity to sell your house or take out a second mortgage and walk away with the money.
- Clerical error: inconsistent paperwork or historical records, such as a discrepancy in the property or fence line that causes confusion over ownership rights.
Unexpected title claims include:
- Outstanding mortgages, judgments, or liens because the seller did not pay required taxes.
- Pending legal action against the property that could affect your ownership.
- An unknown heir of a previous owner claiming ownership of the property.
3. Is owner's title insurance a good value?
Owner's title insurance is a one-time fee that is very low relative to the value it provides. It typically costs around 0.5% of a home's purchase price. Unlike premiums you pay every month, you never renew it, and the coverage continues for the life of your ownership.
4. Does it cover your heirs?
Yes. As long as you or your heirs own your home, owner's title insurance protects your property rights. That means a claim tied to something that happened before you bought the home can be defended years or even decades later.
5. Why can't home insurance replace it?
Home insurance and home warranties protect only the physical structure and its systems. Neither one defends your legal right to own the property. Owner's title insurance is the only coverage that keeps your family's property rights protected against title defects.
6. Do most homebuyers choose it?
Yes. Each year, more than 80% of America's homebuyers choose to get owner's title insurance. That widespread adoption reflects how effectively the policy protects one of life's biggest purchases for a modest one-time cost.
7. What kind of peace of mind does it provide?
Owner's title insurance lets you rest assured that you will not be stuck with certain existing debts or legal problems once you have closed on your new home. If a covered claim arises, the policy also pays legal fees and court costs to defend your title. That security is why so many buyers consider it essential.
Common questions about owner's title insurance
What is the difference between owner's and lender's title insurance?
A lender's policy protects the bank for the amount of the mortgage and is usually required to get a loan. An owner's policy protects your equity for the full purchase price. If you only have a lender's policy, your investment in the home is not protected.
How much does owner's title insurance cost?
It is a one-time fee that typically runs around 0.5% of the home's purchase price. There are no monthly premiums and no renewals. Who pays for the policy varies by state, so ask your title professional how it is handled in your area.
How long does owner's title insurance last?
Coverage lasts for as long as you or your heirs own the property. You buy it once at closing and it does not expire while you hold the home. That is why it protects against defects that predate your purchase, even if they surface years later.
Do I still need it if I trust the seller?
Yes, because many title defects are unknown even to an honest seller, including forged documents, recording errors, and undisclosed heirs. A title search reduces risk but cannot uncover everything in the public record. Owner's title insurance covers the gaps that a search may miss.
Title Resources Inc. (The Title Guy) helps homebuyers protect their investment with owner's title insurance. Call (636) 527-9670 or email orders@TitleResourcesInc.com, or start your order at titleresourcesinc.com/order-title/.
