As you approach closing on your new home, you’ll encounter two types of title insurance: Owner and Lender.
An owner’s policy protects you, the buyer, against any errors, omissions, or undisclosed information that a title search did not unearth. If someone challenges your ownership of the property, an owner’s title insurance policy protects you. The buyer purchases an owner’s policy; it’s a one-time charge paid at closing. The policy is issued in the amount of the purchase price of the home. The policy covers you as long as you – or your heirs – own the home. An owner’s title insurance policy is not required, but we highly recommend it.
A lender’s policy protects your mortgage lender’s interest in the property. The charge for this is paid by the buyer, and it is based on the amount of your loan. The lender’s policy remains in effect while the mortgage is owed. It offers no protection for you – just the lender.