Colorado Title Insurance Policy: What Buyers and Sellers Should Know

Jerad Larkin
22 minutes ago
2 min read

Introduction: Protecting Property Ownership

When purchasing real estate in Colorado, one of the most important protections you’ll receive is a title insurance policy. Many people ask: “What exactly does a Colorado title insurance policy cover, and why do I need one?”

Learn what a Colorado title insurance policy covers. Jerad Larkin and Chicago Title Colorado explain owner’s and lender’s policies, costs, and benefits.

In this blog, we’ll explain the basics of title insurance policies, the difference between an owner’s and lender’s policy, and why Jerad Larkin and Chicago Title Colorado are trusted to provide them across Denver, Colorado Springs, and the Front Range.

What is a Title Insurance Policy?

A title insurance policy is a legal contract that protects property owners and lenders against losses resulting from title defects. Unlike most types of insurance that protect against future risks, title insurance protects against past ownership issues that may affect property rights.

Types of Title Insurance Policies in Colorado

Owner’s Policy - Protects the homeowner’s ownership rights for as long as they own the property. Covers:
- Fraud or forgery.
- Unpaid taxes or liens.
- Errors in public records.
- Undisclosed heirs claiming ownership.
- Boundary or survey disputes.
Lender’s Policy - Required by mortgage companies to protect their financial interest in the property.

For full protection, buyers should secure both types of policies.

Why Title Insurance Policies Matter in Colorado

Colorado’s fast-growing housing market carries risks such as:

New construction liens from unpaid contractors.
Clerical errors in county recording offices.
Inheritance disputes when heirs appear after closing.
Boundary disagreements in rural or suburban areas.

A title insurance policy ensures buyers aren’t left paying for these unexpected issues.

How Much Does a Colorado Title Insurance Policy Cost?

Rates are regulated statewide, so costs are consistent across providers:

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

Who Pays for a Title Insurance Policy in Colorado?

Payment responsibilities are negotiated in the purchase contract, but common practices include:

Seller provides the owner’s policy.
Buyer pays for the lender’s policy.

Why Chicago Title Colorado is a Trusted Provider

Jerad Larkin and Chicago Title Colorado provide comprehensive policies backed by one of the nation’s strongest underwriters. They offer:

Thorough title searches to uncover risks before closing.
Clear title commitments outlining requirements and exceptions.
Secure escrow services to handle funds.
Agent resources such as O&E reports, farming tools, and property books.
Local expertise across Denver, Colorado Springs, and the Front Range.

Real-Life Examples

A Denver buyer avoided a $20,000 lien because Chicago Title’s policy flagged it before closing.
A Colorado Springs seller resolved an old mortgage issue identified during the title commitment process.
A Fort Collins agent explained the benefits of an owner’s policy to clients, earning trust and repeat business.

Conclusion

So, what is a Colorado title insurance policy?

It’s your financial protection against ownership risks - and one of the most important safeguards in real estate. With Jerad Larkin and Chicago Title Colorado, buyers, sellers, and agents gain peace of mind knowing every detail is covered.