Title Insurance Types

There are two title insurance policy types to consider when purchasing your home. TitleQuest offers lender’s and owner’s title insurance from our national underwriters.

Lender’s Title Insurance

Lender’s title insurance protects your lending institution against title problems to your property for the life of the loan. Lender’s title insurance is a condition of the loan, in order for the lender to loan the money so they are protected. The lender’s policy coverage amount is based on the amount of the initial mortgage and decreases over the life of the loan as the balance decreases. The lender’s coverage terminates when you pay off the mortgage in full.

As lender’s title insurance only covers claims that affect the lender’s loan., to protect yourself, you may want to purchase owner’s title insurance.

Owner’s Title Insurance

An owner’s title insurance policy covers the owner for as long as they own the property. The owner’s title insurance policy covers the owner both legally and financially and insures you will not be liable for any lien that arose from the property’s history before you purchased it. The owner’s policy remains in effect as long as you or your heirs have an ownership in the property. Purchasing an owner’s policy can also save you money if you decide to refinance your property.

Standard and Enhanced Options  

There are two types of owner’s title insurance options: Standard and Enhanced.  

Refinancing Your Home

When you refinance your home, you are required to purchase a new lender’s policy.Because your prior policy only covered the life of your first loan and you are ending it, you will need a new policy one to cover the life of the new loan. You do not need to purchase a new owner’s policy.