Owner’s Title Insurance in Ohio

Buying a home means purchasing more than a building. You are also purchasing the legal ownership—or title—to the property.

A title search is completed before closing to identify recorded ownership problems, liens and other issues. But some problems may remain hidden or may not be discovered until after you own the home.

That is where owner’s title insurance may help.

Most mortgage lenders require a lender’s title insurance policy. That policy protects the lender’s financial interest in the property—not the homeowner’s equity. An owner’s title insurance policy is separate. It may protect your ownership interest if a covered title claim connected to events before your purchase appears after closing.

In Ohio, buyers must receive a notice explaining that a lender’s policy does not provide title protection to the property owner when an owner’s policy has not been requested.

Depending on the policy, coverage may include certain losses involving:

• Previously undisclosed liens or mortgages
• Errors in public records
• Forged or improperly executed documents
• Fraud involving prior ownership
• Missing heirs or disputed estate interests
• A previous owner who lacked legal authority to transfer the property
• Incorrect legal descriptions
• Certain undisclosed easements or ownership claims
• Legal expenses associated with defending a covered title claim

Coverage is subject to the policy’s limits, conditions, exclusions and listed exceptions.

Owner’s title insurance generally does not cover:

• Problems created after you purchase the property
• Issues you knew about but did not disclose
• Exceptions specifically listed in the policy
• Property damage covered by homeowners insurance
• Every survey, boundary or zoning issue
• Matters excluded by the policy or applicable endorsements

Read the proposed policy and title commitment carefully. Insurance documents are not exactly beach reading, but neither is a lawsuit over who owns your driveway.

An owner’s policy is generally optional, even though a lender’s policy is usually required for a mortgage.

Whether to purchase one is your decision. Consider:

• The purchase price and equity you are protecting
• The property’s ownership history
• The title search and listed exceptions
• The policy cost and available coverage
• Advice from the licensed title agent or real-estate attorney handling the transaction

Before closing, ask the title company:

• What does the owner’s policy cover?
• What exceptions will be listed?
• Is enhanced coverage available?
• Are survey or boundary matters covered?
• What is the additional cost when issued with the lender’s policy?
• How would I submit a claim?

Concorde Mortgage can explain where lender’s and owner’s title insurance appear in the mortgage process. Questions about specific coverage, exclusions or claims should be directed to your licensed title insurance agent or attorney.