A home is typically one of your largest investments, involving many forms of insurance to protect against the unexpected.
- Homeowners insurance protects against fire, theft, and wind damages.
- Flood insurance protects against water damage.
- And title insurance protects against hidden title hazards that may threaten the financial investment of your home for you (or your heirs).
There are two types of title insurance we offer at Bankers Title & Bankers Closing Services.
An owner’s policy protects your property rights for as long as you are the owner of the home. It protects you, or your heirs, from title defects. The CFPB defines Owners Title Insurance well, saying “Owner’s title insurance provides protection to the homeowner if someone sues and says they have a claim against the home from before the homeowner purchased it” (Consumer Financial Protection Bureau).
A lender’s policy is required by the lender to protect their financial interests. The buyer typically pays for this policy at closing. CFPB defines a Lenders’ Policy as “Lender’s title insurance is usually required to get a mortgage loan. Lender’s title insurance protects your lender against problems with the title to your property—for example, if someone sues to say they have a claim against the home. Lender’s title insurance does not protect your investment in the home (your equity). If someone sues with a claim against your home, you are the first person responsible. The lender’s title insurance policy only covers claims that affect the lender’s loan” (Consumer Financial Protection Bureau).
At Bankers Title & Bankers Closing Services, we are committed to making information about the home closing process accessible and easy to understand to help you feel educated and secure about your closing experience.
For more information about ordering Owners or Lenders TItle Insurance, visit our Order Title page.