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

Jerad Larkin
2 hours ago
2 min read

Introduction: Protecting Your Property Rights

When buying a home in Colorado, title insurance is one of the most important - yet often misunderstood - parts of the transaction. Many homeowners ask: “What does my title insurance policy actually cover?”

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

In this blog, we’ll explain Colorado title insurance policy coverage, what’s included, what’s not, and why Jerad Larkin and Chicago Title Colorado are trusted to protect buyers and lenders statewide.

What is a Title Insurance Policy?

A title insurance policy protects against losses caused by defects in the property’s ownership history. Unlike most insurance types, it doesn’t cover future risks - it protects you from past issues that could affect your ownership after closing.

What’s Covered Under a Colorado Title Insurance Policy?

Typical coverage includes:

Unpaid property taxes or liens from previous owners.
Clerical errors in county records.
Fraud or forgery on past deeds.
Undisclosed heirs who claim ownership.
Boundary or survey disputes.

These issues can cause financial loss or even threaten your ownership - but a title insurance policy ensures you’re protected.

What’s Not Covered

While coverage is broad, it does not include:

Issues created by the current owner after purchase.
Environmental hazards.
Zoning or land-use changes.
Easements and covenants already disclosed in the title commitment.

Two Types of Policies in Colorado

Owner’s Policy
- Protects the buyer’s ownership rights for as long as they own the home.
- Optional, but strongly recommended.
Lender’s Policy
- Required by mortgage lenders.
- Protects the lender’s financial interest in the property until the loan is paid off.

Cost of Title Insurance Coverage in Colorado

Since premiums are regulated statewide:

Owner’s Policy: $1,000–$2,000 depending on purchase price.
Lender’s Policy: A few hundred dollars.
One-Time Payment: Paid at closing, not ongoing.

Why Coverage Matters for Colorado Homeowners

Colorado’s diverse property landscape - from Denver condos to mountain homes - comes with unique risks. A solid title insurance policy provides:

Peace of Mind – Confidence that ownership is secure.
Financial Protection – Coverage for liens or disputes.
Legal Defense – Representation in case of a covered claim.

Why Choose Chicago Title Colorado

Jerad Larkin and Chicago Title Colorado provide comprehensive protection backed by experience and expertise:

Thorough title searches before closing.
Transparent policies with clear coverage details.
Secure escrow management of funds and documents.
Local expertise across Denver, Colorado Springs, and the Front Range.
National financial strength for dependable protection.

Real-Life Examples

A Denver buyer avoided a $19,000 lien when coverage resolved the issue.
A Colorado Springs seller closed confidently after title policy verification.
A Boulder homeowner was protected when a clerical recording error surfaced.

Conclusion

So, what does Colorado title insurance policy coverage include?

It protects against past ownership issues that could affect your home’s title. With Jerad Larkin and Chicago Title Colorado, homeowners, buyers, and lenders can rest assured that every transaction is covered with confidence.