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