Why should I buy Owner's title insurance if the Lender is going to have it when purchasing the home?
When you purchase a home, there are typically two types of title insurance policies: lender's title insurance and owner's title insurance. Lender's title insurance is required by most lenders and is designed to protect the lender's interest in the property in case there are any title defects or liens that were missed during the title search.
While lender's title insurance protects the lender, it does not provide any coverage for the homeowner. That's where owner's title insurance comes in. Owner's title insurance is an optional policy that you can purchase to protect your own interests in the property.
Owner's title insurance provides coverage for a wide range of issues that could potentially arise after you purchase the property, such as undisclosed heirs, forged documents, mistakes in public records, and other title defects. Without owner's title insurance, you could be responsible for resolving these issues on your own, which could be costly and time-consuming.
While lender's title insurance is designed to protect the lender's interest, owner's title insurance is designed to protect your own interests as a homeowner. While it is optional, it can provide peace of mind and financial protection in case any unexpected issues arise with the property's title.
* Specific loan program availability and requirements may vary. Please get in touch with your mortgage advisor for more information.