No, it protects the lender if their priority is threatened. Remember when we said that an owners policy was optional but prudent?
Here is why. Without a corresponding owners policy, you the owner are first in line to either pay or defend against any claim. Your only two choices are to pay whatever it may cost or to default on your loan, thus resulting in foreclosure. Only then will the lender’s title insurance company become involved on their behalf.
Related Questions
- No, it protects the lender if their priority is threatened. Remember when we said that an owners policy was optional but prudent?
- What happened to the religious communities who said they were not going to adopt the "zero tolerance" policy of the US Bishops?
- Is it prudent to add teenagers and college students to the car insurance policy?
