owner's title policy

owner's title policy

Title insurance that protects the owner against loss if there is an adverse claim against the owner's property and that provides legal counsel to defend against adverse claimants. Typically, the mortgage lender will require a mortgagee's policy that will protect it, but the owner fails to specify that he or she also wants an owner's policy.The increased premium is usually negligible.If there is a mortgagee's policy but no owner's policy,and if there is an adverse claim to the property that is found to be good and not defeatable,the title insurance will pay off the mortgage lender to the full amount of its loan,but the owner will receive nothing and suffer the loss of its equity.