Question:

What kind of property title insurance do I need?

Answer:

The property title insurance, required when a mortgage loan is taken, is the lenders title insurance policy. Lenders require title insurance upon mortgage loan inception. However, lender title insurance policies only protect the lender.

Should borrowers buy owner's property title insurance?

If you want your own interest in the real estate to be protected, you'll have to purchase owner's title policy. They can be bought together with the lender's title policy, or separately.

Also, even if your home is a brand new one you are required to get property title insurance for the lender. Lenders won't like a land boundaries claim on their collateral.

In case you want full title protection - for events before and after the date the owner's property title insurance was purchased, you will have to buy ALTA Homeowner's Title Policy. It is recommended that you buy one - this will protect you in case identity theft, or any other false claims arise.

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