Which type of title insurance protects against undisclosed defects?

Owner's title insurance is designed to protect property owners from potential claims against their ownership of the property that could arise from undisclosed defects. This type of policy provides coverage for issues that may not have been identified during the initial title examination process, such as unknown heirs, fraudulent signatures, or other hidden problems that could affect the property's title.

The policy remains in effect for as long as the owner or their heirs hold the property, giving them peace of mind against any future claims. This is particularly important since many title issues can emerge after the sale has been completed and the buyer has taken possession of the property, ensuring the owner's investment is secured against risks that may not have been visible at the time of purchase.

In contrast, lender's title insurance primarily protects the mortgage lender's interest in the property against similar risks, but it does not cover the owner's equity. General property insurance focuses on protecting against damage to the property itself rather than issues with the title. Hence, owner’s title insurance is the correct choice for protecting against undisclosed title defects specifically.