- What is a Lender's Policy?
- A lenders policy protects the mortgage holder. If there is a fault in the title that results in a loss, the mortgage holder is covered.
- What is a Homeowner's Policy?
- A Homeowner's policy protects you, the purchaser, against a loss that may occur from a fault in your ownership or interest you have in the property.
- Can a Lender's Policy be purchased without an Owner's Policy?
- Yes, in fact, most secondary market lenders will require that you purchase a Lender's Policy for closing, but the Owner's Policy would be optional to you.
- Does a Lender's Policy protect the buyer the same as the lender?
- Only to the extent the loan would be paid if there were a loss. There would be no equity protection to the buyer.
- What does a Homeowner's Policy provide?
- Protection from financial loss due to demands that may be charged against the title to your home, up to the cost of the title policy. Payment of legal costs if the title insurer has to defend your title against a covered claim and payment of successful claims against the title to your home covered by the policy, up to the cost of the policy.
- How long does my coverage last?
- Once purchased, title insurance will remain in effect for as long as you own the property.
- How does title insurance differ from other types of insurance?
- Most other forms of insurance are to protect the insured against losses arising out of unforseen future events, while the purpose of title insurance is to eliminate risks and prevent losses caused by defects in a title arising out of past events.
- How do I obtain Title Insurance and how much will it cost me?
- Contact your closing agent, title company, attorney or realtor and let them know you want to purchase an owner's policy at the closing of your new purchase. They will quote you a policy premium which has already been established.
- What do I need to bring to closing with me?
- Remember to bring the following with you to your closing
*Picture ID
*Certified funds check, cashier's check or bank money order for your total due at closing
*Homeowner's insurance policy
*Any additional items your lender might require
