Did you know that there are actually two kinds of title insurance. The first kind, Owner’s Title Insurance, also known as the Owner’s Policy, protects the homeowner from claims against their property’s title. The second kind, Lenders Title Insurance, also known as the Loan Policy, protects the lender from claims against the property. Let’s take a look a more in depth at the two kinds of title insurance.
Owner’s Title Insurance
The Owner’s Title Insurance/Owner’s Policy protects the homeowner from any claims that may arise against the title. This insurance is purchased at the time on closing for a one-time fee, usually for the amount of the real estate purchase, and lasts as long as you or any of your heirs have an interest in the property which it covers. Title problems that this the Owner’s Title Insurance covers include undisclosed heirs, forgery, and any mistakes in examining records or mistakes in the deeds themselves. If a claim is brought against your title, the Owner’s Policy protects you with the legal backing of your title company.
Lender’s Title Insurance
The Lender’s Title Insurance/Lender’s Policy does the same thing the Owner’s Policy does, except it covers the lender of the property. When a title claim is filed, it’s filed against everyone who has an interest in the title. If you still owe money on the property to the lender, the lender has an interest in the property, and therefore is vulnerable to claims against the title. The Lender’s Policy protects them from these claims.
American Home Title Group has been helping Marylanders with their title needs for over 25 years. In the ever-volatile real estate industry, a company’s longevity can be attributed to the quality of its work. With more than 120 years of experience in real estate and titles, American Home Title Group is your Baltimore title company ready to provide you with the best experience possible in every capacity.
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As your Baltimore title company, American Home Title Group is ready to assist you today with a variety of real estate needs you may have. Contact us now to begin your home titling process. Our phone number is 410-750-8500. To reach us via email, please send a message to firstname.lastname@example.org. Follow our blog and keep up with us on Google+, Facebook, and Twitter.