Lender's Policy of Title Insurance is a fee required by most mortgage
lenders, and will protect the lender until you sell or re-finance the
property from such title risks as forged signatures in the chain of
title, recording errors, unpaid real estate taxes, other recorded liens,
defective foreclosures, title search errors, undisclosed easements and
title claims by missing heirs and ex-spouses.
Homeowner’s Title Insurance Policy protects the homeowner’s equity from
title risks up to the policy limit. The major risk is forged signatures,
such as an ex-husband who forged an ex-wife’s signature on a deed. Other
insured risks include improperly executed documents, defective
recording, undisclosed restrictive covenants, liens on your title
because of a security deed, judgment, tax or special assessment, or a
homeowner’s association charge, unmarketable title and mechanic’s liens.
Homeowner's Policy of Title Insurance is a one-time fee which will
protect the equity in your home up to the policy limit for as long as
you own the property. You are protected from the same risks as the
lender. And if you purchase the property for cash, and/or from a
relative or friend, you may need a Homeowners Policy to protect you from
unknown real estate tax liens, judgments or IRS liens. If you are
purchasing a new home, you may need protection in case the developer's
title was defective, or the contractor didn't pay all of the
subcontractors or businesses who provided materials for the construction
of the house.