What type of policy insures that the taxes will not increase?

The Owner’s Policy is specifically designed to protect the interests of the property owner. In the context of property taxes, this type of policy can offer assurances that the insured property will not face unexpected increases in taxation that could result from prior liens or encumbrances not disclosed during the title search process.

This assurance helps buyers feel secure that there won't be sudden financial burdens due to unknown tax liabilities attached to the property. While the Owner's Policy focuses on various aspects of title protection (such as issues related to ownership, liens, and encumbrances), the potential for undisclosed tax-related issues is a critical component of its coverage.

As a result, if there are recorded tax claims or if a property's tax status changes, the Owner's Policy can provide protection and recourse for the property owner against unexpected or unjust tax increases linked to historical assessments or errors not evident at the time of purchase. Thus, it is tailored to safeguard the owner's interests specifically in relation to tax stability alongside other title concerns.