Lakeside Title Inc.
It Insures Your Rights.
Why Lenders Like It, Too
Information courtesy of Westcor.
Your mortgage lender also has a great financial interest in the property you're buying. Just as you do, lenders rely on title insurance companies to ensure that they won't be impacted by unforeseen title problems that could affect them. The Lender's Policy covers them for the amount of the loan, and declines accordingly, as the loan is paid.
The title insurance policy is what people usually think of when they think of title insurance. For this reason, there are two kinds of title insurance policies: one for owners and one for lenders. An Owner's Policy is assurance that your title company will stand behind you - monetarily and with legal defense - if a title problem arises after you buy your home. Bottom line: your title company will be there to help pay valid claims and cover the costs of defending an attack on your title. Receiving an Owner's Policy isn't always an automatic part of the closing process, however. Be sure to request one. Without an Owner's Policy, you could be liable for these costs and legal fees, even if you prevail in a legal action.
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