The owner’s policy protects you against losses from ownership problems that arose before you bought the property, but that were not known at the time you bought the property. For example, you could lose title to your property due to fraud, errors or omissions in previous deeds, or forgery of a previous deed. The owner’s policy protects the buyer from the covered risks listed in the policy.
There are separate types of policies for commercial and residential property. The T-1 is commonly used for commercial property and undeveloped land. The T-1R is for most residential property.
For a complete list of covered risks in the T-1 policy, see the Covered Risks section of the owner’s policy.
For a complete list of covered risks in the T-1R policy, see the Covered Title Risks section of the residential owner’s policy.
How long does it last?
An owner’s policy lasts as long as you or your heirs own the land. It also may provide warrantor’s coverage after you no longer own the property, depending on your policy provisions. Policy language has changed over time, so read the continuation of coverage provisions in your policy carefully to determine coverage terms.
Do you have to renew your policy?
No, you pay for title insurance only once, when you buy the policy, unless you decide later to add more coverage. Keep your policy, even if you transfer your title or sell the property. Coverage lasts as long as you or your heirs own the land, and may last forever for any title warranties made when you sell the property.
What if you lose your copy of the title policy or need another copy?
TDI does NOT receive or keep copies of title policies issued in Texas. You will need to contact the title company you purchased the policy from. If the title company no longer exists, you will need to reach out the underwriter to file a claim or request a copy of your policy.
What happens if I transfer my title to my business, my trust, my LLC, or my children?
Depending on the type of policy you have, it may not provide coverage when you transfer your title into your business or to someone else that is not considered an insured. To determine what type of coverage you have, read your policy, check with your title agent, or speak with an attorney.
What if my home increases in value? Am I still covered?
You are covered for the value of your policy. If you add improvements to your home, or if your home increases in value over time, you can buy an increased value endorsement to cover the increase in your property’s value.