What is owner’s title insurance – 
do I really need it?

One of the closing costs you will pay is the lender’s title insurance. It protects the lender from title defects which may have been missed during the title search or may not appear on the record. You have an opportunity at that time, for a small additional cost, to purchase owner’s title insurance, which protects you as owner against such title defects. Again, the lender’s title insurance policy does not protect the owner. Owner’s title insurance covers losses generally up to the amount of the purchase price. Owner’s title insurance guarantees the owner has marketable title to the property. It insures against title defects, liens and encumbrances existing as of the date of the policy. It covers defects that may have been missed during the title search, defects not appearing of record, and title problems that may have been caused by prior owners. It not only protects owners while they own the property, but also protects them if title issues arise when they go to sell the property - and even after they sell the property. You purchase owner’s title insurance through an attorney’s office.