Title Insurance Coverage in Colorado: What Homebuyers Need to Know

Jerad Larkin
Oct 17
3 min read

Introduction: Protecting Your Home Investment

When buying a home in Colorado, one of the most important but often misunderstood aspects of the closing process is title insurance coverage. Many homebuyers ask: “What does title insurance actually cover in Colorado?”

The short answer: it protects you from financial loss tied to problems with the property’s ownership history. In this blog, we’ll explain what title insurance covers, what it doesn’t, and why Jerad Larkin and Chicago Title Colorado are trusted across Denver, Colorado Springs, and the Front Range for providing comprehensive protection.

Learn what title insurance coverage includes in Colorado. Jerad Larkin and Chicago Title Colorado explain how it protects buyers, sellers, and lenders.

What is Title Insurance?

Title insurance is a one-time purchase at closing that protects homeowners and lenders against ownership disputes, liens, or errors. Unlike most insurance policies that cover future events, title insurance covers past problems that could impact your ownership rights.

What Does Title Insurance Cover in Colorado?

Title insurance policies in Colorado typically cover:

Unpaid Taxes or Liens – Protects against previous owners’ unpaid property taxes or contractor bills.
Fraud & Forgery – Covers losses due to forged signatures or fraudulent documents in the property’s history.
Errors in Public Records – Fixes mistakes in legal descriptions, names, or other filing errors.
Unknown Heirs or Ownership Claims – Protects against someone coming forward claiming rights to the property.
Boundary & Survey Issues – Covers disputes caused by incorrect property boundaries.

What Isn’t Covered by Title Insurance?

It’s important to know what title insurance does not cover:

Issues that arise after you purchase the property.
Zoning or land-use disputes.
Environmental hazards or physical property defects.

This is why it’s essential to combine title insurance with inspections and due diligence before buying.

Owner’s Policy vs. Lender’s Policy

In Colorado, two types of title insurance are common:

Owner’s Policy – Protects the homebuyer’s ownership rights.
Lender’s Policy – Required by the mortgage company to protect their investment.

Both policies work together to ensure a safe and secure real estate transaction.

Title Insurance Costs in Colorado

A frequent question is: “How much does title insurance coverage cost in Colorado?”

Costs are regulated statewide and vary slightly by provider.
An Owner’s Policy typically costs $1,000–$2,000 depending on the purchase price.
A Lender’s Policy usually costs a few hundred dollars.
It’s a one-time fee paid at closing, not a recurring cost.

Why Title Insurance Coverage is Critical in Colorado

Colorado’s diverse real estate market makes coverage essential:

Denver: Competitive, fast-paced market where quick closings can create risk.
Colorado Springs: Heavy military relocations with frequent transactions.
Front Range Suburbs: New construction often carries risk of mechanic’s liens.

Title insurance ensures that buyers across Colorado are protected, no matter the market conditions.

Why Chicago Title Colorado Provides the Best Coverage

Jerad Larkin and Chicago Title Colorado stand out because they offer:

Comprehensive coverage backed by a national underwriter.
Thorough title searches to reduce risk before closing.
Escrow services for secure fund management.
Agent tools like O&E reports, farming data, and property books.
Educational resources to help agents explain coverage to their clients.

Real-Life Example

A Denver buyer avoided a $15,000 contractor lien thanks to Chicago Title’s title search and coverage.
A Colorado Springs family relocating with the military closed smoothly without ownership disputes.
A Front Range agent won more listings by highlighting Chicago Title’s strong protection in their presentations.

Conclusion

So, what does title insurance coverage include in Colorado?

It covers past ownership issues, liens, errors, and claims that could threaten your home investment. With Jerad Larkin and Chicago Title Colorado, buyers and agents across the state gain peace of mind knowing their transactions are secure.