ABOUT TITLE INSURANCE

There are two kinds of title insurance: Lender's insurance, and Owner's insurance. Usually lenders require that you purchase lender's insurance when they issue you a loan. The lenders policy amount decreases each year and eventually disappears as the loan is paid off. Owner's insurance is usually purchased for a one-time fee at closing and lasts as long as you or your heirs have an interest in the property, and in many cases even after the insured has sold the property. Only Owner's insurance completely protects the buyer should a problem arise with the title that was not uncovered during the title search. Owner's insurance also pays for any legal fees involved in defending a claim to your title.