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Types of Title Insurance Coverage

Title insurance is a type of protection that helps safeguard buyers, sellers, lenders, and other parties involved in real estate transactions against unexpected title problems or disputes. This coverage can provide peace of mind and financial security for all those invested in the property.

Understanding Your Title Insurance Options​

When it comes to title insurance, there are several types of coverage available depending on your needs and circumstances. Here are some common types of title insurance you may encounter:

  • Owner's Title Insurance: This type of coverage is designed specifically for homeowners who want to protect themselves against unexpected title issues or disputes. It typically includes a policy that covers the insured party for as long as they own the property.
  • Lender's Title Insurance: Lenders often require borrowers to purchase lender's title insurance as a condition of their loan. This type of coverage protects the lender in case the borrower defaults on the loan and the lender needs to foreclose on the property.
  • Escrow Agent's Title Insurance: In some cases, an escrow agent may also require title insurance as protection against potential title issues or disputes. This type of coverage is usually limited to the duration of the escrow account.
  • Owner's Policy with Extended Coverage: Some homeowners may choose to purchase extended coverage in addition to their standard owner's policy. This can provide extra protection against unexpected title problems or disputes and may be worth considering for high-risk properties.
  • Title Commitment: A title commitment is a preliminary report that outlines any potential title issues or concerns identified during the title search process. It serves as a guide for negotiating the terms of the sale and identifying any necessary repairs to the title before closing.