Lender’s Policy

Most institutional lenders require title insurance for the amount of the loan, but this insurance only covers the lender, not YOU. To be covered by title insurance, a homeowner must purchase a separate owner’s title insurance policy. The cost of the lender’s title insurance policy, except for a nominal charge, is included in the cost of the owner’s title insurance policy when purchased simultaneously. In addition, after purchasing an owner’s title insurance policy, in most jurisdictions, the property owner is entitled to receive a discount called a “reissue rate” when the owner refinances their loan (some time restrictions and limitations may apply depending on the title insurer).