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The lender may make the borrower purchase a lender’s title insurance policy when getting a mortgage. <\/p>
If the ownership of the property is contested this title insurance will protect the amount they lent out. <\/p>
A lender’s title insurance policy pays the lender the outstanding amount they\u2019re owed when someone else claims ownership of the property, and if it\u2019s legally upheld.<\/p>\n
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But a lender’s title insurance doesn’t protect the owner or their investment. If a claim to ownership comes up, the new owner will have to pay for legal proceedings. <\/p>
The owner could also lose the money they have spent on their down payment and subsequent mortgage payments. Hence a separate owner’s title insurance policy is a wise purchase.<\/p>\n
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As long as the owner has the home the more valuable the Owner’s title insurance becomes. <\/p>
As the owner continues to pay their mortgage, they own a greater percentage of their property and have more to lose. <\/p>
A title claim can come up at any time, even after decades of being in the house. One should have an owner\u2019s title insurance policy if they plan to stay in their home for many years.<\/p>\n
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Many times owner’s title insurance is often confused with the lender’s title insurance. <\/p>
A lender’s title insurance is usually required for the purpose of getting a mortgage loan. <\/p>
So if a question is asked as to, is owner’s title insurance is required, then the answer is no, there\u2019s no law requiring the owner to purchase any additional policy to cover their potential losses.<\/p>\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t