Types of Policies 

Owner’s Title Insurance

Bon Air Title Agency provides title insurance coverage to Purchasers and Lenders. As a purchaser, please do not get confused and think that the Lender’s Title Insurance Policy protects you in the event of a title claim against the real estate property.

To protect your interest ask your real estate closing attorney for an Owner’s Title Insurance Policy.

An Owner’s Title Insurance Policy protects the purchaser(s) if someone challenges a property title based on any title defects that were unknown when the policy was purchased. The title coverage protects the purchaser(s) and their heirs as long as they have an interest in the real estate property. To obtain this title insurance coverage, the purchaser pays a one-time premium at closing.

In the event there is a title claim against the real estate in the future, the title insurer, without expense to the insurance policy holder, will defend the real estate property owner against a challenge to the property title.

We encourage you to speak to your real estate closing attorney about the benefits of title insurance to help you understand the importance of having an owner’s title policy and the risk you take when you do not have a title insurance policy which gives you protection.

Lender’s Title Insurance

A Lender’s Title Insurance Policy protects the lender if someone challenges a property title based on any title defects that were unknown when the policy was purchased.

When a purchaser obtains a mortgage in order to purchase their new home, it is usually a loan requirement that they obtain a Lender’s Title Insurance Policy.

The title insurance coverage doesn’t provide any protection for the purchaser. If there is a complete failure of title, the purchaser may have no protection and may lose both the real estate property and the equity in the property. The real estate property owner could also incur legal fees and any tax penalties assessed against the property.

A purchaser should never presume that the lender obtained title insurance for them. If you have any questions, please contact us or your real estate closing attorney.