Owner's Policies
What is an owner’s policy?
An Owner’s Policy of Title Insurance protects your investment for as long as you or your heirs have an interest in the property.
Why should you purchase an owner’s policy?
1. Buying a home is a big investment.
For a one-time premium, an owner’s policy of title insurance helps protect it
2. The seller may not own the home or have authority to sell it.
Title insurance offers coverage against defects in title caused by fraud, forgery, incapacity, impersonation or the seller’s lack of authority to sell the property.
3. Warranties in your deed may not guarantee your ownership of the home.
Even if the seller warrants good title to you in the deed, the seller may not have the money to pay your losses if a problem arises. When you purchase an owner’s policy of title insurance from First American Title, you have the financial power of First American to protect you against loss from covered claims.
4. The policy may cover more than just ownership.
Depending on the type of policy issued, coverage insuring against loss due to disputes over boundaries, access rights and easements may be provided to you. Ask about available options for extended or expanded coverage.
5. A lender’s title policy does not cover you.
Your lender may have required you to pay for a lender’s policy of title insurance, but that policy only provides insurance to the lender. A homeowner is not covered, and cannot make a claim, under a lender’s policy of title insurance.
6. The high cost of claims.
Title disputes are not cheap. Are you prepared to pay a lawyer to fight for you in court? Title insurance includes coverage for legal expenses which may be necessary to investigate, litigate or settle an adverse claim.
7. Coverage for a one-time premium.
The premium for an owner’s policy of title insurance is only paid once and covers you for as long as you hold an interest in the title to your home. The coverage automatically continues for the benefit of your heirs as well.
The above information is courtesy of First American Title. First American Title is an Underwriter for All American Title Company.