Should buyers purchase owner’s title insurance?
Attorneys and other real estate professionals recommend that buyers purchase owner’s title insurance. An owner’s title insurance policy protects the property owner by paying loss that arises due to covered title issues and by paying costs and fees if title needs to be defended against covered claims. While the closing attorney will do an expert title examination, there are many undetectable title issues that can cause financial loss and heartache. Today, the best title insurance policy available on the market is the “enhanced” policy with greatly expanded coverage over the standard owner’s title insurance policy. All lenders require that the closing costs for the loan include a title insurance policy to protect them against any such title claims. Property owners, though, are not protected by the lender’s policy; they have the option at closing of buying an owner’s title insurance policy that will give them the same kind of protection. Most buyers purchase owner’s title insurance; the o
