There are two kinds of title insurance policies you need to be aware of: the Owner’s Title Insurance Policy and the Lender’s Title Insurance Policy. Not knowing how each works can leave you vulnerable.
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There are two different types of title insurance policies that most people buying a home need to be aware of. The first is the owner’s title insurance policy, which insures your ownership of your asset. The second is the lender’s title insurance policy, which ensures that the lender that’s loaning you the money for the home is in the appropriate lien position against the title of the property.
Why would you need a policy when the lender has their own? The lender’s title insurance policy is only ensuring that the lender doesn’t incur any financial loss if some kind of problem arises. If you don’t have an owner’s title insurance policy and you were to lose money as a result of some sort of defect on the title, the insurance company wouldn’t pay you—they would only pay the lender.
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Not having title insurance can leave you financially vulnerable.
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Not having title insurance can end up costing you in unforeseen ways. For example, say the home you purchased had a kitchen fire three months before you purchased it and the owner hired someone to repair the kitchen for $100,000. After they sold that property to you, if they didn’t pay that $100,000 for the kitchen, you could be financially responsible for the repair costs.
If you need more information from Rob, you can reach him by phone at (303) 831-7575 or visit canyontitle.com.
If you have any more questions, feel free to email me or give me a call. I look forward to helping you in any way I can!
