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Should I Get Owner's Title Insurance?

Updated: Jan 17

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A title insurance policy extends its coverage beyond the mere loss of down payment or monthly mortgage installments, encompassing legal costs and encumbrances. Even if your initial investment is minimal or non-existent, the need to rectify a fraudulent deed through legal channels could arise, necessitating the assistance of an attorney.

You may be unaware of deceptive information within your deed, yet you could still incur legal expenses to address and resolve the matter. If you anticipate potential difficulty in covering legal fees, the option of obtaining a title insurance policy could be worth considering. Another potential concern pertains to intergenerational property ownership. Acquiring property from your parents, who, in turn, inherited it from their predecessors, might lead you to believe that surprises are unlikely. Regrettably, historical encumbrances and unresolved issues from bygone eras can surface unexpectedly, and you must be protected.

Is it a Requirement?

In certain instances, it may not be obligatory. There occasionally needs to be more clarity between the owner's title insurance and the lender's title insurance, which is typically mandatory to secure a mortgage loan. It's important to note that no legal mandate compels you to acquire an extra policy to safeguard against potential losses.

What is Covered?

Acquiring an owner's title insurance policy involves a one-time expenditure to provide security against potential financial setbacks from title-related complications. In the event of a lawsuit filed by an individual asserting fraudulent ownership of your property, the policy assumes responsibility for covering your legal expenses and court-related charges.

Moreover, if the state pursues you for overdue property taxes from the past, the policy extends its coverage to address those liabilities. These issues typically remain hidden and beyond your control, yet they possess the potential to impose significant financial burdens.

Undisclosed title challenges encompass the following:

  • Outstanding mortgages, judgments, or property liens arise from the seller's failure to settle taxes.

  • Pending legal actions linked to the property that might impact your interests.

  • Unidentified heirs of former property owners asserting claims to ownership.

Unforeseeable title disputes involve:

  • Forgery entails the creation of falsified documents. For instance, a seller might distort the identity of the person involved in the property sale.

  • Fraud encompasses deceptive actions for illicit gains. A scenario could involve someone else claiming to have a right affecting your title because of fraud, duress, incompetency, or incapacity.

  • Clerical errors arise from inconsistent paperwork and historical records. For instance, a document on which your title is based was not properly filed, recorded, or indexed in the public records.

For most individuals, a home constitutes the most substantial investment they'll undertake. To embark on your purchase with a sense of assurance, consider securing owner's title insurance, ensuring your property is shielded against potential legal claims. We offer responses to common queries to clarify the functioning of owner's title insurance.

Buchanan Settlement Services has dedicated years to serving the requirements of homeowners, sellers, land developers, lenders, legal experts, and real estate professionals. To receive a comprehensive price estimate for your Pennsylvania Title Insurance, kindly contact us via phone at 717-762-1415 or email at, and we'll promptly provide a quote.

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