If you are going through the homebuying process, there are likely tons of terms flying at you that are hard to keep track of! One of them as you go through the underwriting process may be about Owner’s Title Insurance. Here are some reasons to consider purchasing Owner’s Title Insurance to protect your largest asset! 

First, Title is the ownership right to your property. Without Title Insurance, you have nothing protecting your real estate investment or your property rights. There are 2 main types of policies out there- Owner’s Title Insurance and Lender’s Title Insurance. A lender’s policy is required by the lender and protects their interest in the property, but now yours. 

An Owner’s Policy protects your property rights for as long as you are the owner of the home from title defects. 

Chase Bank explains that:

“Owner’s title insurance also becomes more valuable the longer you have your home. As you continue to pay your mortgage, you own a greater percentage of your property and have more to lose. A title claim can come up at any time, even decades into the future. You should be especially interested in having an owner’s title insurance policy if you plan to stay in your home for many years.” 

and we completely agree! The longer you plan to stay in your home, the more important having a good title insurance policy is. Owner’s title insurance is the best way for you to protect your property from future legal claims. The one-time fee of purchasing it covers you and your heirs for as long as you own the home. The owner’s policy will also cover legal fees for settling claims against your property rights.

Owner’s Title Insurance covers “Defects”. Defects are things such as: 

  • Another person claiming an ownership interest
  • Improperly recorded documents
  • Fraud 
  • Forgery 
  • Liens 
  • Encroachments 
  • Easements 

Unfortunately, defects can come up, which is why having a clear title is so important! It also can become a major problem to sell your home in the future if you don’t have a clear title to pass on to the new owner. 


With a one time fee costing about .05% of the home’s purchase price, we think it is crucial for homeowners to purchase Owner’s Title Insurance! Work with a trusted Minnesota company like Bankers Title & Bankers Closing Services to ensure your property protection.

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