What is owners title insurance?
A basic owners title insurance policy protects you against problems with the title to your property that occurred before the date of the policy. This policy is separate from the lenders title policy. You have to buy an owners title insurance policy if you want insurance against any defects in your property title that will affect your interest. Even though you may pay for lenders title insurance, it does not specifically protect your interest.
The cost of your owners title insurance will be listed in Block 5 of your Good Faith Estimate (GFE) (and on Line 1103 of your settlement statement). It may change between your GFE and closing if you do not use companies your loan originator identifies, but if you use companies your loan originator identifies it generally cannot increase by more than 10 percent.