When we finish the title search on the property you’re purchasing, we’ll offer you a title insurance policy. This insurance will cover you should someone claim an interest in your home based on information that was not unearthed in our search.
Title insurance actually comes in two parts. One part protects your lender, who will likely require you to purchase a lender’s title insurance policy. This protects the lender if someone makes a claim against your ownership. Lender’s title insurance lasts for the life of the mortgage.
But lender’s title insurance only protects the lender; it offers no protection to you, the new owner. The second part of title insurance, an owner’s policy, protects you should someone make a claim against your ownership. Owner’s title insurance is not required, but it is highly recommended.
An owner’s policy lasts as long as you own the home and cannot be transferred to a new owner.
Wondering how title insurance works? Contact Foote Title Group today. We’re happy to answer your questions.