What Is The Difference Between Owner’s Title Insurance and Lender’s Title Insurance?
As their names suggest, an owner’s title insurance policy provides protection for the owner of real estate, while the lender’s title insurance policy provides protection for a lender that holds a deed of trust on the owner’s property. Almost all lenders require a lender’s title insurance policy for loans secured by real estate. Owner’s title insurance is usually acquired at the time of the initial purchase of the property. Owner’s title insurance is valid for an indefinite period of time and can often be helpful upon the sale of the property if the new purchaser’s title examination reveals exceptions that are not excepted in the existing owner’s policy. A lender’s policy expires upon the payoff of the loan. A new policy is required for each new loan, refinance, or home equity loan. However, title insurance companies usually provide a discount known as a simultaneous issue premium if owner’s title insurance and lender’s title insurance are both acquired at the same time. A reissue rate
