Colorado Title Insurance Coverage: What’s Included and Why It Matters

Jerad Larkin
2 days ago
2 min read

Introduction: Protecting Your Investment

When purchasing real estate in Colorado, one of the most important protections you’ll secure is title insurance coverage. Many buyers ask: “What does a Colorado title insurance policy actually cover?”

Learn what Colorado title insurance coverage includes. Jerad Larkin and Chicago Title Colorado explain protections, exclusions, and why coverage matters.

In this blog, we’ll break down what’s included in title insurance coverage, what isn’t, and why Jerad Larkin and Chicago Title Colorado are trusted across Denver, Colorado Springs, and the Front Range to provide comprehensive protection.

What is Title Insurance Coverage?

Title insurance coverage protects against losses caused by defects in a property’s ownership history. Unlike auto or health insurance, which cover future risks, title insurance covers past issues that could impact your ownership rights.

What Does Colorado Title Insurance Cover?

Typical title insurance coverage includes:

Unpaid Taxes or Liens – Protects against debts from previous owners.
Errors in Public Records – Corrects clerical mistakes that affect ownership.
Fraud or Forgery – Covers losses from fraudulent transfers or forged documents.
Unknown Heirs – Protects against claims from heirs who weren’t disclosed.
Boundary or Survey Issues – Covers disputes over property lines.

What Title Insurance Does NOT Cover

While coverage is broad, it doesn’t include:

Environmental hazards.
Future zoning changes.
Issues created by the homeowner after purchase.
Items specifically excluded in the title commitment (such as easements or covenants).

Types of Coverage in Colorado

Owner’s Policy – Protects the buyer’s ownership rights.
Lender’s Policy – Required by mortgage companies to protect their financial interest.

Both policies are critical for complete protection.

Why Title Insurance Coverage Matters in Colorado

Colorado’s unique mix of urban and rural properties makes coverage essential:

Older Homes – Risk of long-forgotten liens or recording errors.
New Construction – Possible mechanic’s liens from unpaid contractors.
Rural Properties – Boundary disputes and mineral rights concerns.

Without coverage, these risks could lead to costly legal battles.

How Much Does Title Insurance Coverage Cost in Colorado?

Since rates are regulated, coverage costs are consistent statewide:

Owner’s Policy: $1,000–$2,000 depending on purchase price.
Lender’s Policy: A few hundred dollars.
One-Time Fee: Paid at closing, coverage lasts as long as you own the home.

Why Chicago Title Colorado is Trusted for Coverage

Jerad Larkin and Chicago Title Colorado provide comprehensive title insurance coverage backed by national financial strength. They offer:

Thorough title searches to uncover risks before closing.
Clear title commitments to outline exceptions.
Secure escrow services for funds.
Agent resources like O&E reports, farming data, and property books.
Local expertise with Denver, Colorado Springs, and Front Range properties.

Real-Life Examples

A Denver buyer avoided paying off a $20,000 lien thanks to coverage under their policy.
A Colorado Springs seller resolved a decades-old mortgage issue before closing.
An agent in Boulder explained policy coverage to clients, earning trust and repeat business.

Conclusion

So, what does Colorado title insurance coverage include?

It protects buyers and lenders from past ownership issues like liens, fraud, or recording errors. With Jerad Larkin and Chicago Title Colorado, clients gain the peace of mind that their investment is secure.