Is Owner’s Title Insurance is a Rip-Off?: Demystifying the Value and Importance of Title Insurance for Property Owners

Owner’s Title Insurance: A Smart Investment or a Rip-Off?

If you are buying a home in the USA, you may have heard of owner’s title insurance.

This is a type of insurance that protects you from any claims or liens that may arise on the property after you purchase it.

But is owner’s title insurance really worth it, or is it just a rip-off that benefits the title companies and lenders?

In this post, we will explain what owner’s title insurance is, how it works, and why you may want to consider getting it. We will also provide some tips on how to shop for the best deal and avoid paying unnecessary fees.

Title Insurance
Photo Courtesy:


What is Owner’s Title Insurance?

Owner’s title insurance is a policy that covers you, the buyer, in case someone else claims ownership of the property or has a legal right to it.

For example, there may be a hidden lien, a forged deed, a missing heir, or a clerical error that affects the title of the property.

If any of these issues come up after you buy the property, you could face a lawsuit, lose your home, or pay a lot of money to settle the dispute.

Owner’s title insurance protects you from these risks by paying for the legal fees and damages that may result from a title defect.

It also covers you for as long as you own the property, or even after you sell it, depending on the type of policy you choose.

How Owner’s Title Insurance Work
An Image Illustration of How Owner’s Title Insurance Works

How to Shop for the Best Deal on Owner’s Title Insurance

Owner’s title insurance is not regulated by the federal government, but by the state governments.

Each state has its own rules and rates for title insurance, which can vary significantly.

Therefore, it is important to shop around and compare different options before you buy title insurance.

Photo Courtesy:


Here are some tips on how to shop for the best deal on owner’s title insurance:

  • Ask your real estate agent, lender, or attorney for recommendations on reputable and reliable title companies in your area.
  • Check the ratings and reviews of the title companies online, and look for any complaints or lawsuits filed against them.
  • Compare the premiums, coverage, and exclusions of different policies, and ask for a detailed breakdown of the fees and charges.
  • Negotiate with the title company for a lower premium or a discount, especially if you are buying both lender’s and owner’s title insurance from the same company.
  • Ask the seller to pay for or split the cost of the owner’s title insurance, as part of the sales contract or closing costs.


Why Should You Consider Getting Owner’s Title Insurance?
An Image Illustration of Why You Should Consider Getting Owner’s Title Insurance?


Owner’s title insurance is a type of insurance that protects you from any title defects that may affect your ownership of the property.

It is optional, but it is highly recommended by many real estate experts and attorneys, as it provides many benefits and safeguards your investment.

Owner’s title insurance is not a rip-off, but a smart investment that can save you from a lot of hassle and money in the future.




Spread the love