Owner's policy
Owner's title insurance in North Carolina
The only title policy that protects you, the buyer. What it covers, what it costs, and how to choose standard or enhanced.
Is owner's title insurance worth it in North Carolina?
For most buyers, yes, but it is your decision. An owner's policy is the only title insurance that protects you rather than your lender. It costs a one-time premium at closing, set by the filed NC rate schedule, and it stays in force for as long as you or your heirs own the property.
The NC Department of Insurance describes the owner's policy as one that remains in effect as long as you or your heirs own the property, and even afterwards while you are liable for title warranties you made when selling. You are not required to buy one, the policy cannot be transferred to the next owner, and the prior owner's policy does not protect you. NC Department of Insurance, Title Insurance
When people ask whether it is worth it, they are usually asking three things: what does it actually cover, what does it cost, and what is the chance I will need it. The first two have clear answers. The third does not, which is exactly why insurance exists.
What an owner's policy covers
The policy protects against financial loss from covered claims against your title up to the policy amount, pays legal costs if the insurer must defend your title against a covered claim, and pays successful covered claims. NC Department of Insurance, Title Insurance The Department lists common hidden risks covered by owner's title insurance, including:
Fraud and forgery
False impersonation of the true owner, forged deeds and documents, and fraud in the chain of title.
People with a hidden claim
Undisclosed or missing heirs, spouses of prior owners who said they were single, and invalid divorces.
Paperwork errors
Errors in recording documents, clerical errors in public records, mistakes in examining records and errors in deeds.
Capacity problems
Signatures of minors or people who were not mentally competent, and documents signed under an expired power of attorney.
Money owed by someone else
Unsatisfied prior mortgages, unpaid taxes, child support liens and liens from recent construction that was not disclosed.
Estates and trusts
Title irregularities that come from a prior owner's estate, bankruptcy estate or trust.
What it does not cover
No policy covers everything. NC DOI lists matters that are typically not covered, including defects you knew about, government condemnation, zoning and building code violations, restrictive covenants that limit how you can use the property, boundary and area problems if you did not obtain a survey and give it to the insurer, and rights of parties in possession such as tenants. NC Department of Insurance, Title Insurance Your policy will also list specific exceptions found during the title search. The NC Bar Association recommends asking your attorney about those exclusions before closing, because some may be risks you are not willing to accept. NC Bar Association, Buying a Home
Standard or enhanced coverage
North Carolina's rate manual offers two levels on qualifying improved one to four family homes. The standard owner's policy is priced at the regular rate. The ALTA Homeowner's Policy of Title Insurance, often called the enhanced policy, is available at the applicable rate plus an additional 20% of the regular rate. NCTIRB rate manual, effective Feb 1, 2026
| Standard owner's policy | Enhanced (ALTA Homeowner's Policy) | |
|---|---|---|
| Who it is for | Any property | Qualifying improved one to four family residences |
| When the covered problem started | Before the policy date | Before the policy date, plus certain listed matters after it |
| Premium under the filed NC manual | Regular rate (PR-2) | Regular rate plus 20% of the regular rate (PR-3) |
| Where to see the exact coverage | The policy form | The policy form; ask your attorney to compare |
The CFPB notes that enhanced owner's products provide additional coverage and may increase the coverage amount as the property appreciates. CFPB TRID title insurance factsheet The precise list of added coverages is in the form itself, so ask your closing attorney or us for the comparison before you choose.
What it costs
The owner's premium is calculated from the policy amount, which should be the full purchase price. NC Department of Insurance, Title Insurance Under the current manual, the regular rate is $2.78 per thousand dollars of coverage up to $100,000, then $2.17 per thousand from $100,001 to $500,000, $1.41 per thousand from $500,001 to $2,000,000, $1.08 from $2,000,001 to $7,000,000 and $0.75 above that, with a minimum premium of $56. NCTIRB rate manual, effective Feb 1, 2026
| Purchase price | Standard owner's premium | Enhanced owner's premium |
|---|---|---|
| $200,000 | $495.00 | $594.00 |
| $300,000 | $712.00 | $854.40 |
| $450,000 | $1,037.50 | $1,245.00 |
| $650,000 | $1,357.50 | $1,629.00 |
If the seller's owner's policy was issued within the last fifteen years and is provided, the reissue rate of 50% of the regular rate applies up to the prior policy amount. When you also have a loan, the lender's policy is added for a flat $28.50 simultaneous issue charge. NCTIRB rate manual, effective Feb 1, 2026 Try your own numbers in the calculator.
How to get one
Ask your closing attorney for an owner's policy when your file is opened, choose standard or enhanced coverage, and name your preferred title agent on the attorney's preference sheet. If you would like Ironwood to issue it, write "Ironwood Title Group, orders@ironwoodtitlegroup.com". The final owner's policy is issued after closing and recording; keep it with your deed.
Questions people ask
How long does an owner's title policy last in NC?
As long as you or your heirs own the property, and afterwards while you remain liable on title warranties you made when you sold, according to the NC Department of Insurance.
Can I buy an owner's policy after closing?
It is normally purchased at closing, when it can be issued with the lender's policy at the simultaneous issue rate. Ask your attorney if you are considering coverage later, since a later policy would be priced and underwritten separately.
Is the enhanced owner's policy available on every property?
No. Under the NC rate manual the ALTA Homeowner's Policy is available for qualifying improved one to four family residences.