Why consider an owner’s policy?

A search is a starting point

Before a title insurer agrees to issue coverage, a title professional reviews records and identifies matters to resolve or except. That process is valuable even when no claim ever occurs. It helps the parties find a path to closing with a clearer picture of the property’s recorded history.

Some problems are hard to see in those records. A document may have been forged, an heir may later assert an interest, or a filing may have been indexed incorrectly. The question is not whether a title search was careful; it is whether a covered issue might still appear after closing.

Your interest and the lender’s interest are different

A mortgage lender commonly requires a lender’s title policy. That policy is for the lender. If you want protection for your own ownership interest, ask about an owner’s policy as a separate decision.

An owner’s policy is typically paid for with a single premium at closing, but prices and practices vary by state and transaction. Read the issued policy for its continuation rules, covered risks, exclusions, exceptions, and limits.

Questions worth asking before closing

A short conversation with your closing team can make the decision more concrete.

• Will I receive an owner’s policy, a lender’s policy, or both?
• What matters will be listed as exceptions to coverage?
• Are there requirements that must be completed before the policy is issued?
• Which policy form is proposed, and are other options available for this property?