| You purchase homeowners insurance to protect | | | | reported.Actually there are two types of title |
| yourself financially in case something happens to | | | | insurance: lender policy and the owner's title |
| your property or its contents. However | | | | insurance. Most lenders require a loan policy when |
| homeowners insurance won't protect your | | | | they issue you a loan to protect their interest |
| financial interests if a matter arises regarding past | | | | (the amount they loaned you) should a problem |
| ownership of your property. That is where title | | | | arise. The policy amount decreases each year and |
| insurance comes in.Only the title to the land and | | | | eventually disappears once the loan is paid off. |
| not the land itself can be purchased. So, unless a | | | | Therefore the owner should also have title |
| homeowner possesses a clear title, he or she | | | | insurance to protect his/her financial interest. Only |
| risks losing his/her home and the land under it. | | | | owner's title insurance fully protects the buyer. |
| Title insurance guarantees the title as | | | | |