top of page

Lender VS. Owner Policy

A Lender's Policy and an Owner's Policy are two distinct types of title

insurance policies with different purposes.

Lender's Policy

  • Purpose: Protects the mortgage holder (lender) in the event of a fault in the title that results in a loss.

  • Coverage: If a covered title issue leads to a financial loss, the mortgage holder will be compensated.

  • Beneficiary: The lender is the beneficiary of this policy.

  • Duration: Typically required by the lender for as long as the mortgage is in effect.

1_edited.jpg
2_edited.jpg

Owner's Policy

  • Purpose: Protects the purchaser (property owner) against losses arising from faults in their ownership or interest in the property.

  • Coverage: Provides coverage for financial losses due to demands against the title, up to the amount of the title policy.

  • Beneficiary: The property owner (purchaser) is the beneficiary of this policy.

  • Duration: Lasts for as long as the owner or their heirs have an interest in the property.

What an Owner's Title Policy Provides

  • Financial Loss Protection: Covers financial losses due to demands against the title to your home, up to the amount of the title policy.

  • Legal Defense Costs: Covers legal costs if the title insurer has to defend your title against a covered claim.

  • Claims Payment: Provides payment for successful claims against your home covered by the policy, up to the cost of the policy.

 

In summary, an Owner's Policy is designed to protect the property owner from financial losses and legal challenges related to the title, while a Lender's Policy protects the mortgage holder (lender) in case of title faults. Both policies provide essential protection during real estate transactions, ensuring the security of the property's title.

bottom of page