What does an owner's title insurance policy cover?

An owner's title insurance policy is designed specifically to protect the property owner's equity in the property. This type of policy provides coverage against potential issues that could arise after the purchase of real estate, such as undiscovered liens, encroachments, or claims of ownership that could affect the owner's legal rights to the property. By securing the owner's investment, this insurance helps ensure that if a problem arises that undermines the owner's title, they are financially protected.

While other options mention important aspects related to property ownership, they do not pertain directly to the specific coverage provided by an owner's title insurance policy. For instance, protecting the lender's investment is relevant to a lender's policy, which is a separate entity from an owner's policy. Similarly, property maintenance costs and compliance with zoning laws are significant to property ownership but fall outside the scope of what title insurance directly addresses.