You may not realize it, but, in Oklahoma, if you are getting a loan when you buy a residential property, you will be buying title insurance. The mortgage company requires it, you will be buying title insurance for the mortgage company whether or not you buy it for yourself. That fact may raise a question.

“If my lender gets a title insurance policy, why do I need a separate policy for myself?”

Answer: The lender’s policy covers only the amount of their loan, which is usually not the full property value. In the event of an adverse claim, the lender would ordinarily not be concerned unless its loan becomes non-performing and the claim threatened the lender’s ability to foreclose and recover its principle and interest. In the event of a claim there is no provision for payment of legal expenses for an uninsured party. When a title insurance loan policy is being issued, there is only a small additional expense to also receive the protection of an owner’s policy.

“So do I really need an Owner’s Title Insurance Policy?”

The Answer:  Without an owner’s title insurance policy, you may not be fully protected against errors in public records, hidden defects not detected, or mistakes in the examination of the title. As a result, you may be held fully accountable for any prior liens, judgments or claims brought against your new property. With owner’s coverage title insurance, if a problem does arise the title will be defended without cost to you, and if the title, or any part of it, can not be defended, you will be reim­bursed, up to the face amount of your policy, for any financial loss incurred.

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