Who benefits from title insurance in a Colorado deal?

• A. The buyer and the lender.
• B. Only the buyer.
• C. Only the seller.
• D. The title company.

Answer: (D)

Title insurance protects against losses from title defects that aren’t found in the public records, giving security to the party who holds the policy. In a Colorado deal, there are two common policies: an owner’s title policy for the buyer and a lender’s title policy for the mortgage lender. Those policies mean the primary beneficiaries are the buyer (through the owner’s policy) and the lender (through the lender’s policy). The seller doesn’t receive protection from the title insurance, and while the title company earns the premium and handles the policy, the protections themselves are for the insured parties, not the insurer.