Title insurance protects a property investment at various points of a property, such as when it’s in construction, at a point of resale, and during refinance transactions.
Yes, you may already own the property, but each time a property changes hands a new owners policy should be purchased. It’s important to note, that when a lender is involved in this type of transaction, a title insurance lender’s policy will always be required.
Even after a few months of purchasing your property, a lot could have changed. Thanks to title insurance, your lender can protect your investment and issue a refinance loan. Without a new policy, the lender processing a refinance could be unprotected and exposed to major risks.
Lender’s title insurance protects your lender against problems with the title to your property. It’s important to know that it only protects the lender’s interests in the property, not you, the buyer. For instance, someone could sue saying they have a claim against the home, when you have a lender’s title insurance policy, it covers claims that can affect the lender’s loan.
In many cases, the coverage provided will be same as your owner’s title insurance, that’s mainly because the basic kinds of issues this insurance covers are customary, including tax liens, unknown co-owners or heirs, contractors’ costs to improve the property and debt claims that may be against the property.
Do you have questions when it comes to Owner’s Title Insurance vs. Lender’s Title Insurance? We can help! Contact us to answer all of your questions and make sure you’re protected 732-359-2009.