Colorado Title Insurance: Who Pays, What It Costs, and What Owner’s Extended Coverage Adds

In Colorado, the purchase contract decides who pays for the owner’s title policy. Under the state’s standard residential contract, the seller picks the title company and pays for the owner’s policy if § 8.1.1 is checked, the buyer pays if § 8.1.2 is checked, and if neither box is checked, § 8.1.1 applies. The buyer generally pays for the lender’s policy.

That’s the short answer. Most of the rest of Colorado title insurance comes down to two things you should read before you sign: the extended coverage line in § 8.1.3, and the filed rates every title company has to keep on hand for you.

Key takeaways

• Title insurance protects against problems from the past in a property’s chain of title. You pay for it once, at closing.
• Colorado’s standard contract lets buyer and seller negotiate who picks the title company and who pays for the owner’s policy. If neither box is checked, § 8.1.1 puts both on the seller.
• Underwriters file their premiums with the state, and every title company must have its filed rates readily available.
• The table below explains the six standard exceptions that OEC can remove or insure over.

What title insurance covers

The Colorado Division of Insurance (DOI) describes title insurance as an indemnity contract for past defects in the chain of title. It protects you against matters that already happened, such as unpaid taxes, liens or an error in the legal description.

Your auto and homeowners policies work the other way. They cover events that haven’t happened yet.

There are two basic forms:

• Owner’s policy. Covers the owner, usually in the amount paid for the property.
• Lender’s policy. Covers the lender, usually in the amount of the loan.

You pay a one-time premium, usually at closing. The owner’s policy covers you as long as you own the property.

Every Colorado title insurance policy starts with a title commitment. Per DOI, the commitment identifies the insurer and details the premiums. It lists what has to happen before a policy issues and spells out specific exceptions, such as covenants, mineral or water rights, and easements. Read the exceptions slowly, because that list is where your coverage gets carved back.

The title company also prepares the settlement statement, disburses funds, pays off liens and records documents with the county. Your owner’s policy is mailed to you after recording. For more on that role, see what a title company does.

Who pays for title insurance under the Colorado contract

DOI says Section 8 of the Colorado “Contract to Buy and Sell Real Estate (Residential)” lets the buyer and seller negotiate who selects and who pays for the owner’s policy. Generally, the buyer pays for the lender’s policy.

The current CBS1 form, for use on or after January 1, 2026, handles the owner’s policy with two checkboxes:

• § 8.1.1 Seller Selects Title Insurance Company. If checked, the seller selects the company and furnishes the owner’s policy at the seller’s expense. The seller must also furnish a Title Commitment in an amount equal to the Purchase Price on or before the Record Title Deadline.
• § 8.1.2 Buyer Selects Title Insurance Company. If checked, the buyer selects the company, and the owner’s policy is at the buyer’s expense.

Then comes the sentence people skip: “If neither box in § 8.1.1. or § 8.1.2. is checked, § 8.1.1. applies.”

So leaving both boxes blank still settles the question. The seller ends up choosing the company and paying for the policy. A seller who assumed the buyer would cover the policy, or a buyer who wanted their own title company, can find this out late if nobody reads § 8.1 closely.

My advice: check one of these boxes on purpose. Who pays for the owner’s policy is a negotiable term in the offer. Treat it like one.

What OEC adds under § 8.1.3

Owner’s Extended Coverage (OEC) gets its own line in the contract. Under § 8.1.3, the parties mark whether the title commitment Will or Will Not contain OEC.

When it’s included, OEC commits to delete or insure over six standard exceptions.

The six standard exceptions OEC addresses

Exception	What it means in plain English
Parties in possession	Someone other than the seller, such as a tenant, may be living on or using the property with rights that don’t show up in the public record.
Unrecorded easements	Someone may have a right to use part of the land, like a path or a utility line, that never made it into the county records.
Survey matters	Boundary problems, encroachments or fence-line issues that only a survey would turn up.
Unrecorded mechanics’ liens	A contractor or supplier who worked on the property and wasn’t paid may have a claim that isn’t on record yet.
Gap period	The window between the commitment’s effective date and the date the deed is recorded.
Unpaid taxes, assessments and unredeemed tax sales prior to the year of Closing	Older tax bills, assessments or tax sales from before the closing year that were never cleared up.

Section 8.1.3 also settles who pays any additional OEC premium. The checkbox options are Buyer, Seller, One-Half each, or Other. That’s another spot where money changes hands, and the contract doesn’t fill in a price for you. Get the OEC cost in the written quote.

The contract itself carries two cautions. Even if the contract requires OEC, the commitment may not provide it. The title company may also require a new survey or ILC first. If OEC matters to you, ask the title company early what it needs.

How Colorado title insurance rates are set, and how to shop

When people search “title insurance Colorado,” they usually want one number. DOI gives a range: “The cost of title insurance and closing fees can range from $1,000 to $2,000, depending on the company and the value of the property or loan.” Your figure depends on your deal, so get it in writing.

Here’s how pricing works, per DOI:

• Insurance companies, called underwriters, set premiums, and those premiums must be filed with the Division.
• Title agencies file their closing and settlement service fees with the Division.
• All title entities must display and have readily available copies of their current filed rates and fees (C.R.S. § 10-11-118(3); Regulation 3-5-1 § 5(A)). The Division keeps public copies.

The Colorado State Auditor’s 2018 performance audit lays out the rules behind that system. Colorado is “file and use.” Insurers file rates, and the Division does not pre-approve them (§ 10-4-401(4), C.R.S.). Statute bars rates that are excessive, inadequate or unfairly discriminatory (§ 10-4-403(1)). No title entity may charge a rate or fee that isn’t on file (Regulation 8-1-1).

In plain terms, the filed rate sheet is the price list, and the company can’t charge you anything that isn’t on it. Ask to see it next to your quote.

Two discounts to ask about:

• Most Colorado title companies discount when the owner’s and lender’s policies are issued together by the same company. That’s why one company usually issues both.
• Some companies offer bigger discounts depending on how long it has been since the property was last sold or refinanced.

DOI’s shopping tips are simple. Get multiple quotes. Real estate brokers are required to give you the names of three title entities. Federal and state laws mandate that no one can require you to buy from a specific company. Ask which underwriter stands behind the policy, and keep in mind that price isn’t everything.

Title is only one line on the closing statement. If you’re building a full budget, read up on the Colorado transfer tax too.

What title insurance does not cover

Title insurance only covers problems that existed before you bought. It won’t cover problems you create after you buy. DOI’s example: a lien caused by the owner’s own failure to pay HOA dues after purchase is not covered.

Traditional title insurance also does not cover title fraud, such as a forged deed recorded after you already own the home. DOI says common targets are paid-off homes and unoccupied properties that aren’t the owner’s primary residence. Alert products exist for this. Ask your title agent about them.

Seller checklist

1. Read § 8.1.1 and § 8.1.2 before you sign. If both are blank, § 8.1.1 applies, and you select and pay for the owner’s policy.
2. If you’re selecting, get written quotes from more than one title company and ask for each one’s filed rate sheet.
3. Find the Record Title Deadline in your contract. Under § 8.1.1, you furnish the Title Commitment by that date.
4. Check the § 8.1.3 OEC line and which box covers any additional premium.
5. If OEC is in play, ask early whether the title company needs a new survey or ILC.
6. Ask whether a discount applies based on when the property last sold or was refinanced.

Buyer checklist

1. If you want to choose the title company, negotiate for § 8.1.2 and expect to pay for the owner’s policy.
2. Confirm whether the commitment Will contain OEC and who pays the extra premium.
3. Read every exception in the title commitment and ask about anything unclear.
4. Plan on paying for the lender’s policy, and ask about the discount for issuing both policies together.
5. Read § 8 as carefully as your earnest money terms.

If you’d like a Colorado agent to walk through § 8 with you before you sign, Trelora does that as part of full-service representation.

Frequently asked questions

Who pays for title insurance in Colorado?

It depends on which box is checked in the contract. Under CBS1 § 8.1.1, the seller selects the title company and pays for the owner’s policy. Under § 8.1.2, the buyer does, and if neither box is checked, § 8.1.1 applies. The buyer generally pays for the lender’s policy.

How much does title insurance cost in Colorado?

DOI says title insurance and closing fees can range from $1,000 to $2,000, depending on the company and the value of the property or loan. For your actual number, ask for a written quote and the filed rate sheet, which title entities must have readily available. Ask about the discount for issuing both policies together, too.

What is owner’s extended coverage?

OEC is an option in CBS1 § 8.1.3. It commits the title company to delete or insure over six standard exceptions, including survey matters, unrecorded mechanics’ liens and the gap period. The contract lets the parties choose who pays any additional premium. The title company may require a new survey or ILC, and the commitment may not include OEC even when the contract calls for it.

Can I choose my own title company in Colorado?

The contract decides who selects: the seller under § 8.1.1, the buyer under § 8.1.2. If you want the choice, negotiate for it in the offer. DOI notes that no one can require you to buy from a specific company, and real estate brokers must give you the names of three title entities.

Does title insurance protect against deed fraud?

According to DOI, traditional title insurance does not cover title fraud, such as a forged deed recorded after you own the home. Paid-off homes and unoccupied non-primary properties are common targets. Alert products exist, so ask your title agent what’s available.