Types of Title Insurance Policies
Title insurance is typically a combination of two policies: an Owner’s Policy and a Lender’s Policy.
As a buyer, you want to protect your investment – and the ownership rights that come with it. An owner’s policy of title insurance will protect your rights as the homeowner for as long as you or your heirs have an interest in the property.
If you are working with a lender to purchase a home or refinance an existing mortgage, purchasing title insurance is a lender requirement. This policy protects the bank or other lending institutions for as long as they maintain an interest in the property.
When purchased simultaneously with an owner’s policy, the lender’s premium is reduced to a simultaneous issue fee – 100.00-125.00, depending on the type of policy. Mortgaging or refinancing the existing mortgage in the future can also afford the property owner a reissue rate discount which could save as much as 40% of the lender’s premium.
How Will Title Insurance Protect Me?
Some common examples of problems covered by an Owner’s Title Policy Include:
- Improper execution of documents
- Mistakes in recording or indexing of legal documents
- Forgeries and fraud
- Undisclosed or missing heirs
- Unpaid taxes and assessments
- Unpaid Judgments and liens
- Unreleased mortgages
- Mental Incompetence of grantors