When you buy a new home, parties not involved in the transaction may have claims against the property, such as old mortgages, judgments, court actions, mis-indexed documents, mechanics' liens from contractors, and much more.
We conduct a title search before the closing to make sure there are no clouds or issues with the title. An issue with the title can cause delays with the closing as they take time to clear up.
An Owner's Policy protects you. A Lender's Policy does not. When you purchase an Owner's Policy, a Lender's Policy is issued at the same time for a small fee. The premium is a one time premium and the coverage lasts, in most cases, even after you sell your home.
If you mortgage your home, most Lenders will require you to purchase a Loan Policy which protects the Lender's investment. A Loan Policy does not protect your interest.
If you purchase your home with cash, you absolutely should have an Owner's Policy to protect your investment.
It is a large investment you need to protect. An Owner's Policy covers almost all title claim amounts plus legal fees and costs.