Owner's Title Insurance
An owner's policy is issued for the amount you pay for the property. It covers a broad range of problems that may arise. This includes tax liens, deed errors or omissions, forgery of deed documents, fraud and mistakes in the public record. It also covers you if any previous owners’ unknown heirs show up to make a claim on the property.
Some owner's policies will also offer extended coverage. Extended coverage protects against things like building permit violations, zoning law violations, certain types of structural damage and inaccurate surveys. If someone sues you due to a title problem, both types of title policies cover legal costs and/or losses.