Owner's title insurance is a type of insurance policy that protects a homeowner from financial loss and legal expenses if a problem arises with the ownership title of their property that existed before they purchased it. This insurance covers issues such as unpaid property taxes, fraud or forgery in previous paperwork, undisclosed heirs or spouses claiming ownership, liens from unpaid debts, and errors in the deed or title documentation
. When you buy a home, you receive a deed transferring legal ownership from the seller to you. However, some title problems might not be discovered during the initial title search. Owner's title insurance protects you if someone later sues claiming a prior ownership interest or if hidden defects in the title surface after purchase. It covers legal fees and costs to defend your ownership and may reimburse you for losses if a claim is valid
. Unlike lender’s title insurance, which protects the lender’s financial interest and lasts only until the mortgage is paid off, owner’s title insurance protects your equity in the home for as long as you or your heirs own the property. It is typically purchased once at closing and remains in effect indefinitely
. In summary, owner’s title insurance safeguards your investment in your home against unknown title defects that could jeopardize your ownership, providing peace of mind and financial protection against title-related disputes from the past
