What is an Owner’s Title Insurance Policy in Colorado?

Jerad Larkin
Oct 18, 2025
3 min read

Introduction: Protecting Your Ownership Rights

When purchasing a home in Colorado, one important decision you’ll face is whether to purchase an owner’s title insurance policy. Many buyers ask: “Do I really need an owner’s policy in Colorado if the lender already requires their own?”

The short answer: Yes. While a lender’s policy protects the bank, an owner’s policy protects you, the homeowner. In this blog, we’ll explain what an owner’s title insurance policy covers, how much it costs, and why Jerad Larkin and Chicago Title Colorado are trusted to provide this essential protection for Colorado buyers.

Learn what an owner’s title insurance policy covers in Colorado. Jerad Larkin and Chicago Title Colorado explain costs, coverage, and protection for buyers.

What is an Owner’s Policy?

An owner’s title insurance policy is a one-time purchase at closing that protects the homeowner’s ownership rights. It ensures that if a claim arises against the property, the policy covers legal costs and potential financial losses.

What Does an Owner’s Policy Cover in Colorado?

Owner’s policies in Colorado typically cover:

Unpaid Property Taxes or Liens – Protects against previous owners’ debts.
Fraud or Forgery – Covers losses if past documents were falsified.
Clerical Errors – Corrects mistakes in public records or deeds.
Unknown Heirs – Protects against ownership claims from heirs not previously disclosed.
Boundary or Survey Issues – Covers disputes over property lines.

Without an owner’s policy, these issues could fall directly on the new homeowner.

Owner’s Policy vs. Lender’s Policy

It’s important to understand the difference:

Lender’s Policy – Required by mortgage companies. Protects the bank’s investment in the home.
Owner’s Policy – Optional but highly recommended. Protects the buyer’s personal ownership rights.

Only an owner’s policy ensures the buyer is fully covered.

How Much Does an Owner’s Policy Cost in Colorado?

Many buyers worry about cost, but here’s the good news:

The cost is a one-time fee paid at closing.
Typically ranges from $1,000 to $2,000 depending on the home’s purchase price.
Coverage lasts as long as you own the property.

Considering the protection it provides, the cost is small compared to potential risks.

Who Pays for the Owner’s Policy in Colorado?

In Colorado, payment responsibility is negotiated in the purchase contract. Commonly:

Sellers pay for the owner’s policy.
Buyers pay for the lender’s policy.

However, this can vary by county or contract terms.

Why Every Colorado Homebuyer Should Have an Owner’s Policy

Colorado’s competitive housing market - especially in Denver, Colorado Springs, and the Front Range - makes protection essential. Without an owner’s policy, buyers risk:

Inheriting hidden debts.
Facing expensive legal battles.
Losing partial or full ownership rights.

An owner’s policy provides peace of mind long after closing.

Why Chicago Title Colorado is a Trusted Choice

Jerad Larkin and Chicago Title Colorado ensure buyers are fully protected by offering:

Thorough title searches to uncover risks before closing.
Comprehensive owner’s policies backed by a strong national underwriter.
Educational support to help buyers understand coverage.
Local expertise across Denver, Colorado Springs, and the Front Range.

Real-Life Examples

A Denver buyer avoided a $14,000 tax lien thanks to protection from their owner’s policy.
A Colorado Springs family avoided a legal dispute over property boundaries after coverage resolved the issue.
Agents across the Front Range highlight the importance of owner’s policies to build trust with clients.

Conclusion

So, what is an owner’s title insurance policy in Colorado?

It’s the protection that ensures your ownership rights are safe, even if hidden issues from the past come forward. With Jerad Larkin and Chicago Title Colorado, Colorado buyers gain confidence, security, and peace of mind at the closing table and beyond.