Two Kinds of Policies

Mortgagee’s title insurance protects the interest of the mortgage lender. Lenders who know the many things that can snarl title to real property usually (and rightly) insist upon mortgagee’s title insurance to protect their stockholders and/or investors.

Owners’ title insurance protects the equity of the buyer. Both kinds of the title insurance are available in most areas in a single, low coast “package” that protects both lender and buyer for as long as they or their heirs have any interest in the property. And the title insurer, without expense to you, will defend you against any attack on the title to your property as insured. The one-time premium is small. The protection is great

Why Title Insurance?

In every real estate transfer, the matter of the title examination invariably arises and that is usually followed by a question as to the need of title insurance. The home purchaser often questions whether title insurance is really necessary when an examination of the title has been completed by an accomplishment title examiner or real estate attorney. In this case, it is especially necessary if the examination is available when title records show no adverse information that might lead question as to the marketability of the title. But – does an examination of the title records necessarily remove all doubt of the title problems eventually resurfacing? The answer is NO. That is why title insurance exists and plays such a basic role in protecting the real estate interest and equity of all policyholders.