Owner's policy

The owner's policy insures buyers that the title to the real estate is free from all defects, liens and encumbrances except those which are listed as exceptions in the policy or are excluded from the policy's coverage. It also covers losses and damages suffered if the title is unmarketable. The policy also provides coverage for loss if there is no right of access to the land. These are the basic coverages and expanded residential owner's policy can be purchased that cover additional items of loss.

The liability limit of the owner's policy is typically the purchase price paid for the property. The policy may be paid by the seller or buyer as the parties agree; usually there is a custom in a particular state or county on this matter which is reflected in most local real estate contracts. Consumers should ask their Realtor the cost of title insurance before signing a real estate contract. Title insurance companies provide rate schedules to mortgage companies, real estate attorneys and lenders with detailed information as to the price of title insurance. Title insurance coverage lasts as long as the buyer retains an interest in the real estate insured.