Is Owner’s Title Insurance Necessary?


Prospective purchasers of real property are often initially skeptical as to whether they really need an owner’s title insurance policy. However, once the protection afforded under the insurance policy is explained to the purchaser, they quickly realize that is an essential element of any real estate transaction.

Owner’s title insurance policies protect buyers from considerable financial loss in the event that a problem arises regarding rights of ownership in the property. Factors that can lead to such disputes are more common than buyers realize, and can include unforeseeable issues such as undisclosed heirs, unreleased mortgages, mistakes in prior deeds or other recorded documents, and even questions of mental capacity with prior grantors.

Title insurance pays the cost of defending against any covered claims, and when a valuable investment like a home or business is at stake, forgoing coverage is simply not worth the risk. It is important to note that in Florida, the seller of real property often pays for the buyer’s title insurance policy, so knowledgeable buyers should take full advantage of this protection.

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