As the buyer of a home or other real estate property, you need assurance that your investment and ownership rights are protected. Owner’s title insurance provides property owners peace of mind that their investment is safe against future claims from third parties alleging an interest in the property. In other words, owner’s title insurance is a contract from a title insurance company agreeing to defend the owner’s title. For a one-time fee at closing, an owner’s title insurance policy protects a property owner from undiscovered defects for as long as that owner maintains an interest.
A lender’s title policy only protects the lender, not the property owner, and usually only up to the loan amount.