What types of Title Insurance Policies are available ?
In general, there are two different types of Title Insurance policies available. The Owner’s Title Insurance Policy which offers protection only to the owner against defects in their title to real estate. The Lender’s Title Insurance Policy is meant to insure and protect only the lenders’ loans against defects and losses until the mortgage is paid off. Consequently, a lender’s policy does not provide coverage to the owner in the absence of the owner’s policy. A new owner’s policy need not be necessary when refinancing an existing property, however the lender will require the purchase of a new lender policy.
Two types of title insurance are available. Owner’s title insurance offers protection to the owner against defects in his/her title to real estate. Lender’s title insurance protects lender loans against defects and losses until the mortgage is paid in full. Therefore, a lender’s title insurance policy does not provide coverage to the owner in the absence of owner’s title insurance. A new owner’s title insurance policy is unnecessary when refinancing an existing property; however, the lender will require the purchase of a new lender’s title insurance policy.
