Two Types of Title Insurance
- Owners Coverage - for the buyer.
- Lenders, or mortgage, protection - for the lender.
Owners title insurance protects the buyer and is issued in the amount of the real estate purchase and lasts as long as the insured - or his/her heirs - have an interest in the property covered. This may even be after the insured has sold the property.
The lender policy protects the lender and the title insurance decreases and eventually disappears as the loan is paid off. Most lenders require mortgage title insurance as security for their interest in real estate, just as they may call for fire insurance and other types of coverage as investor protection.
Generally both policies are issued simultaneously during the title insurance process.
