Title insurance is a type of insurance that protects homebuyers and lenders from financial loss due to defects in the property’s title. These defects can include errors in public records, unknown liens, and even fraud. Title insurance policies are purchased during the closing process and can provide coverage for the duration of the homeowner’s ownership of the property.
Owner’s and Lender’s Policies
There are two types of title insurance policies: owner’s policies and lender’s policies. Owner’s policies protect the homeowner’s investment in the property, while lender’s policies protect the lender’s investment in the mortgage. The cost of title insurance can vary depending on the location of the property and the policy type, but it is typically a one-time fee paid at closing.
Protect Your Investment
Although title insurance is not required by law, most lenders require a lender’s policy as part of the mortgage process. Without title insurance, homebuyers and lenders would be at risk of financial loss due to title defects, making it an important aspect of the homebuying process.
Need help navigating the ins and outs of title insurance? Contact Diane Waschenko today!