Who is protected by an owner's title policy?

• A. Owner
• B. Seller
• C. Buyer
• D. Lender

Answer: (A)

An owner's title policy protects the person who holds title to the property—the owner—from losses caused by defects in the title that could threaten ownership. At closing, the owner (often the buyer) purchases this policy to ensure that if issues arise later—such as a forged deed, a misfiled lien, undiscovered heirs, or errors in public records that a title search might miss—the title insurer will either defend the title in court or compensate the owner up to the policy amount. It’s specifically designed to secure the owner's equity in the property.

This protection is separate from a lender's title policy, which guards the lender’s security interest, and it does not cover the seller. So the insured party for an owner's title policy is the owner of the property.