What Is Owner’s Title Insurance and Why Should I Buy It?

Owner’s title insurance is an optional fee that buyers are asked to consider when closing on a property. It is often disregarded since it is optional and frequently not discussed until closing.

Owner’s title insurance protects the owner’s financial interests, safeguarding against loss that may arise from hazards and defects that already exist and affect your legal claim to the property you are buying. Before owner's title insurance is issued, an industry professional searches public records and traces the chain of property ownership to uncover the existence of title problems. The most common hidden risks are:

  • Errors
  • Unknown Heirs
  • Forgery
  • Fraud
  • Easements

Purchasing a home is the most significant single investment that you will make in a lifetime. It is paramount to safeguard the security of your investment from the financial loss that can occur due to title defects. James Renfroe, a local closing attorney with Renfroe and Perilloux, PLLC, explains, “Most people have cars. When they buy a car, they buy car insurance. Now which is worth more, your car or your house? Don’t you think a one-time charge for peace of mind is important for your largest investment? Likewise, claims rarely happen. But when they do, you can lose everything.”