Owner's vs. Lender's Title Insurance: What's the Difference?
When you're closing on a home, you'll likely come across two types of title insurance — owner's and lender's. For many buyers, this is the first time they've encountered either, and the distinction isn't always clear. At Ratified Title Group , we believe an informed buyer is a confident buyer. Here's a straightforward breakdown of what each policy does and why both matter. What Is Title Insurance? Before diving into the differences, let's cover the basics. Title insurance protects against problems tied to a property's ownership history — things like unpaid taxes, undisclosed heirs, forged documents, or clerical errors in public records. Unlike other types of insurance that protect against future events, title insurance covers issues that may have occurred in the past, often without anyone knowing. Lender's Title Insurance: Protecting the Bank If you're financing your home purchase with a mortgage, your lender will almost certainly require a ...