What is the difference between Title Insurance and Owners title Insurance?

Question

Hi Friends,

We are about to buy a home in Mason Ohio and the closing is expected to happen in a few days. I was asked by mortgage lender that if I would be intersted in ' Owners title Insurance policy'?

Already there is a fees ($763.00) that I am paying as Title Insurance fees. So do I really need this extra protection of 'Owners Title Insurance Policy' and if so how will it help me to have this extra protection, when already I am paying for one.

Any suggestions or feedback will be highly appreciated.

Thanks

Ram

Answer 1

You have to buy the title insurance for the mortgage company, but if you want to protect yourself you should consider it.

A very close relative of mine just collected funds from a title company.  Short version is that there were two owners on a house and only one of them signed off on it.  This was discovered five years later when the present "owner" went to sell the house after it had appreciated greatly in value.  Technically he couldn't sell it because it really didn't belong to him.  That would've been a mess.  If you're buying an existing property I would to be safe.  

But, I tend to think if you're buying a new home in a large community (whereas all of the owners could be affected) the risk is lessened somewhat.

Jeff

Answer 2

The title insurance is the Lender's policy that protects the lender from any liens on that property. The Owners policy is for you, the owner to protect you from any liens that may show up on the property. For example, if in 10 years the county finds that someone else owned part of your land and owes money on it, you would be responsible to pay that if you didn't ave an owners policy. It's def worth it to get it.