When you buy a home, you’ll be faced with the choice to buy title insurance. If you have a mortgage, your lender will probably require you to purchase a Loan Policy but you’ll usually have the option to buy an Owner’s title policy as well. But that leads to some confusing questions which is why we created this guide.
What is the Difference Between Lender’s and Owner’s Title Insurance?
Lender’s Title Insurance is a policy that protects the lender from any claims on the title for the property you are purchasing. Because the Lender owns the property until you’ve paid them back, it’s extra security for them.
Does Lender’s Insurance Protect Me?
No, it only protects the Lender as the financer of the property. You will be required to buy the policy by most lenders as a requirement to borrow their money.
Owner’s Title Insurance is a policy that protects you in case someone tries to make a claim on the property you purchased. The claim on your deed or “the document showing the property was transferred to you” [Read more…]