My Lender has a Mortgage Title Insurance Policy On My Property. Why Isn’t that Enough?

Any person or financial institution that lends money on real estate wants that investment protected. Title Insurance companies provide mortgage title insurance policies to assure the lender that the mortgage is a valid first lien protected against hidden as well as known defects in the title as insured. Such a policy affords the only way a lender can be certain about the title which may be acquired in the event of a foreclosure.

Unfortunately, this does not benefit the owner in the event of a claim, for a mortgage title insurance policy protects only the lender's interest in the property, not the current owner. That's why Title Insurance Companies provide owners' title insurance polices to protect the owner's interest in a piece of property. Purchasing your owners title insurance policy at the same time that the lender orders the mortgage title insurance policy can result in cost savings to you.