Why would I purchase an “owner’s policy?” Doesn’t the general title insurance policy cover me?
Absolutely not – it only protects the bank’s interest in case of a title legal battle. In the event that the purchased property has a title defect – legal claim against it, and you do not have your own title insurance, you would not be protected from losing your investment. Furthermore, you will still be obligated to pay your loan, if you financed your purchase. Your ability to go after the Seller may be your only option and may be futile.
