What is the significance of an owner's title insurance policy?

The significance of an owner's title insurance policy is that it provides protection against losses that may arise from title defects that existed prior to the issuance of the policy. This can include issues such as undisclosed liens, claims from unknown heirs, or other defects that could affect the owner's right to the property. The policy ensures that the property owner is safeguarded against potential financial losses related to these issues, thereby providing peace of mind and financial security in their property investment.

The owner's title insurance policy does not guarantee that the property's value will appreciate, nor does it have any direct role in ensuring property taxes are paid on time or in negotiating mortgage rates. Its primary function is to address concerns related to the ownership of the title itself, making the protection it offers unique and essential for property owners.