Title Insurance
Title insurance protects homeowners against legal repercussions.
Don't let unforeseen issues become your responsibility.
Title insurance is a type of indemnity insurance that helps protect home buyers, sellers, and lenders from potential financial loss caused by unforeseen defects in a title to a property. More simply put, title insurance is designed to protect the buyer and seller from potentially unknown property issues. Both parties can have their own title insurance policy, and it’s generally recommended that both do.
There are many different kinds of title insurance policies available in the marketplace today. Some cover only the physical aspects of ownership while others also include coverage for legal rights and obligations that arise when someone buys a property.
Most people selling their home will be required to purchase lender's title insurance, which the borrower purchases to protect the lender.
This is standard practice in most real estate transactions, and may occur without the seller even knowing. However, establishing your own title insurance can better serve your interests throughout the transaction process. The owner will likely procure owner’s title insurance that protects the buyer from similar scenarios. If any problems occur after the transfer of the deed, both parties will be protected with properly drafted title insurance.
Lender's Insurance
Lender’s title insurance protects only the lender against potential title problems.
Owner’s Title Insurance
An ownership policy insures against loss due to defects in title. It covers any claims made by third parties who believe they own an interest in the property. This type of policy does not protect against liens or encumbrances on the property.
Mortgagee Policy
A mortgagee policy protects lenders against losses caused by unpaid mortgages. Lenders typically require borrowers to purchase a mortgagee policy as part of the loan documents.
Easement Policy
An easement policy insures the lender against loss due to an encumbrance on the property. This type of policy covers any interest in the property that has not been paid off. It does not cover improvements made to the property.
Most people selling their home will be required to purchase lender's title insurance, which the borrower purchases to protect the lender.
This is standard practice in most real estate transactions, and may occur without the seller even knowing. However, establishing your own title insurance can better serve your interests throughout the transaction process. The owner will likely procure owner’s title insurance that protects the buyer from similar scenarios. If any problems occur after the transfer of the deed, both parties will be protected with properly drafted title insurance.
Lender's Insurance
Lender’s title insurance protects only the lender against potential title problems.
Owner’s Title Insurance
An ownership policy insures against loss due to defects in title. It covers any claims made by third parties who believe they own an interest in the property. This type of policy does not protect against liens or encumbrances on the property.
Mortgagee Policy
A mortgagee policy protects lenders against losses caused by unpaid mortgages. Lenders typically require borrowers to purchase a mortgagee policy as part of the loan documents.
Easement Policy
An easement policy insures the lender against loss due to an encumbrance on the property. This type of policy covers any interest in the property that has not been paid off. It does not cover improvements made to the property.
Most people selling their home will be required to purchase lender's title insurance, which the borrower purchases to protect the lender.
This is standard practice in most real estate transactions, and may occur without the seller even knowing. However, establishing your own title insurance can better serve your interests throughout the transaction process. The owner will likely procure owner’s title insurance that protects the buyer from similar scenarios. If any problems occur after the transfer of the deed, both parties will be protected with properly drafted title insurance.
Lender's Insurance
Lender’s title insurance protects only the lender against potential title problems.
Owner’s Title Insurance
An ownership policy insures against loss due to defects in title. It covers any claims made by third parties who believe they own an interest in the property. This type of policy does not protect against liens or encumbrances on the property.
Mortgagee Policy
A mortgagee policy protects lenders against losses caused by unpaid mortgages. Lenders typically require borrowers to purchase a mortgagee policy as part of the loan documents.
Easement Policy
An easement policy insures the lender against loss due to an encumbrance on the property. This type of policy covers any interest in the property that has not been paid off. It does not cover improvements made to the property.