Types of Policies

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

 

To protect your interest ask for an Owner’s Policy.

 

An Owner’s 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 coverage protects the purchaser(s) and their heirs as long as they have an interest in the property. To obtain this coverage, the purchaser pays a one-time premium at closing.

 

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

 

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

 

Lender’s Title Insurance

A Lender’s 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 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 property and the equity in the property. The 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.