WHO NEEDS TITLE INSURANCE?
Lenders go to great lengths to assure themselves that they have minimized the risk on loans they make. They check your credit, your ability to pay, then they go a step further. They make sure that the property upon which they are about to lend money is free of title defects. They do this by ordering lender’s policy of title insurance. This policy protects them against loss due to title defects. It also protects their interests from certain matters which may not be known at the time of sale.
“Why do you need title insurance?”
This lender’s policy only protects the lender and does not protect your interest in the property. That’s why you need the owner’s policy. The nominal fee paid for an owner’s policy is paid only once and the title insurance stays in effect for as long as you or your heirs hold title to the property. The small investment made for title insurance will give you the confidence you need in your investment.
First American Title