Understanding Owner’s Title Insurance in Ohio: What You Need to Know
If you're buying or selling a home in Ohio, the term “owner’s title insurance” is mentioned during your real estate journey. While it may seem like just another cost at closing, owner’s title insurance plays a role in protecting your investment and giving you peace of mind long after the keys are in your hand.
What Is Owner’s Title Insurance?
Owner’s title insurance is a one-time purchase made at closing that protects your ownership rights against potential future claims or legal issues tied to the property’s history. These could include undisclosed heirs, errors in public records, unpaid taxes, or even fraudulent documentation. Without title insurance, you could be financially liable for these problems—even if they occurred before you bought the home.
🏡 Owner’s Title Insurance Policy
Who it protects:
➡️ You, the buyer/homeowner.
What it does:
This policy protects your ownership rights to the property. It covers you against issues like:
-
Undisclosed heirs
-
Forged signatures or fraudulent deeds
-
Errors in public records
-
Liens or unpaid taxes that weren’t discovered during the title search
Cost:
One-time fee paid at closing. Who pays? Commonly the buyer.
Optional, but recommended, especially for cash buyers.
Coverage lasts:
As long as you own the property.
🏦 Lender’s Title Insurance Policy
Who it protects:
➡️ The lender (not you).
What it does:
This policy protects the mortgage lender's financial interest in the property. If there’s a title defect that affects the lender's collateral (the home), this insurance covers their losses.
Cost:
Often required by the lender.
Also a one-time fee paid at closing (usually by the buyer).
Coverage lasts:
Until the loan is paid off.
Key Differences at a Glance:
| Feature | Owner’s Policy | Lender’s Policy |
|---|---|---|
| Protects | Buyer/Homeowner | Mortgage Lender |
| Required? | Optional (but recommended) | Yes, if you’re getting a loan |
| Paid by | Usually Buyer (sometimes seller negotiates) | Usually Buyer |
| Coverage Length | As long as you own the home | Until mortgage is paid off |
| Covers Title Issues Like | Liens, ownership disputes, errors | Title issues affecting the lender’s interest |
Final Word
Even if a lender’s title policy is in place, you are not covered unless you also purchase an owner’s title insurance policy. It’s a small cost compared to the potential financial loss if a title problem arises after closing.
Still have questions? Contact your title company or a knowledgeable real estate expert to walk you through the specifics.
📞 Or better yet, call Royer Realty at 937-592-7653 or visit www.royerrealty.com — we're here to help you buy with confidence and protect your investment from day one.
For more information, please check out some of these links.
- Ohio Department of Insurance
- All About Title Insurance PDF by the Ohio Department of Insurance
- Consumer Financial Protection Bureau
- Owner's Title Policy Fee Calculator
- https://facc.firstam.com/
- https://www.oldrepublictitle.com/rate-calculator/ Rate Calculator | Old Republic Title
Please note: Some title companies may require that an Owner's Title Insurance Policy be purchased or charge a higher closing fee without it. Please be aware that this can happen especially on cash purchases. Please ask the title company involved in your transaction (or ones being considered for hire) for details, costs and requirements as fees and requirements do vary.