When you’re buying a home—especially if it’s your first—it can feel like the list of expenses is never-ending. From inspection fees to closing costs, every line item matters. So when your title company or agent mentions “owner’s title insurance” and tells you it’s optional, it’s natural to wonder: Do I really need it?
The short answer? Yes.
And in this post, I’ll explain exactly why.
[What Is Owner’s Title Insurance?]
Owner’s title insurance is a one-time purchase at closing that protects your ownership rights to the home. It shields you from financial loss if someone later challenges your ownership or if a title defect comes to light after settlement.
[But Wait… Didn’t the Title Company Already Do a Title Search?]
They did—and that’s important. A title search helps uncover existing issues like unpaid taxes, liens, or ownership disputes before closing. But no matter how thorough the search, some problems just don’t show up until later.
Here are just a few real-world examples of what can go wrong:
- A previously unknown heir of a former owner suddenly claims the home is theirs
- A forged signature on a deed invalidates the chain of ownership
- An old contractor’s lien surfaces after you’ve moved in
- Clerical or filing errors in courthouse records
- A previous owner used a fake identity to sell the home
Without owner’s title insurance, you would have to pay for the legal defense and any losses out of pocket. With it, you're protected—typically for the full value of your home.
[So What’s the Cost?]
The good news is that owner’s title insurance is a one-time fee paid at closing. The cost varies slightly depending on the purchase price and location, but it’s typically around 0.5% to 1% of the home’s value.
It’s a small price to pay for peace of mind that can last the entire time you own the home.
[Lender’s vs. Owner’s Title Insurance: What’s the Difference?]
This part confuses many buyers: if you’re getting a mortgage, your lender will require lender’s title insurance. But that only protects them, not you. To protect your personal interest in the property, you’ll need your own owner’s policy.
Think of it this way: If you paid cash for your home, the lender wouldn’t be involved at all—so there would be no lender’s policy. But you’d still want protection, right? That’s where the owner’s policy comes in.
[Is It Really Worth It?]
In over 20 years of helping buyers in Northern Virginia, D.C., and Maryland, I’ve seen rare—but serious—situations where clients were incredibly grateful they had owner’s title insurance. One small issue can snowball into a legal battle, and this policy can be your financial safety net.
If you never need it, that’s great. But if you do, you’ll be thankful you spent the few hundred (or low thousand) dollars upfront.
[So What Now?]
When buying a home, it’s important to think not just about the excitement of moving in—but also how to protect yourself for the long run. Owner’s title insurance is one of the smartest ways to do that.
As your realtor, my job isn’t just to help you find the right home—it’s to make sure you understand the risks and protect your investment. If you’re on the fence about this insurance, let’s talk through it together. I’m always here to answer your questions.
The short answer? Yes.
And in this post, I’ll explain exactly why.
[What Is Owner’s Title Insurance?]
Owner’s title insurance is a one-time purchase at closing that protects your ownership rights to the home. It shields you from financial loss if someone later challenges your ownership or if a title defect comes to light after settlement.
[But Wait… Didn’t the Title Company Already Do a Title Search?]
They did—and that’s important. A title search helps uncover existing issues like unpaid taxes, liens, or ownership disputes before closing. But no matter how thorough the search, some problems just don’t show up until later.
Here are just a few real-world examples of what can go wrong:
- A previously unknown heir of a former owner suddenly claims the home is theirs
- A forged signature on a deed invalidates the chain of ownership
- An old contractor’s lien surfaces after you’ve moved in
- Clerical or filing errors in courthouse records
- A previous owner used a fake identity to sell the home
Without owner’s title insurance, you would have to pay for the legal defense and any losses out of pocket. With it, you're protected—typically for the full value of your home.
[So What’s the Cost?]
The good news is that owner’s title insurance is a one-time fee paid at closing. The cost varies slightly depending on the purchase price and location, but it’s typically around 0.5% to 1% of the home’s value.
It’s a small price to pay for peace of mind that can last the entire time you own the home.
[Lender’s vs. Owner’s Title Insurance: What’s the Difference?]
This part confuses many buyers: if you’re getting a mortgage, your lender will require lender’s title insurance. But that only protects them, not you. To protect your personal interest in the property, you’ll need your own owner’s policy.
Think of it this way: If you paid cash for your home, the lender wouldn’t be involved at all—so there would be no lender’s policy. But you’d still want protection, right? That’s where the owner’s policy comes in.
[Is It Really Worth It?]
In over 20 years of helping buyers in Northern Virginia, D.C., and Maryland, I’ve seen rare—but serious—situations where clients were incredibly grateful they had owner’s title insurance. One small issue can snowball into a legal battle, and this policy can be your financial safety net.
If you never need it, that’s great. But if you do, you’ll be thankful you spent the few hundred (or low thousand) dollars upfront.
[So What Now?]
When buying a home, it’s important to think not just about the excitement of moving in—but also how to protect yourself for the long run. Owner’s title insurance is one of the smartest ways to do that.
As your realtor, my job isn’t just to help you find the right home—it’s to make sure you understand the risks and protect your investment. If you’re on the fence about this insurance, let’s talk through it together. I’m always here to answer your questions.
"When you’re buying a home—especially if it’s your first—it can feel like the list of expenses is never-ending. F..."
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