What are the two main types of title insurance?

The two main types of title insurance are owner's title insurance and lender's title insurance. Owner's title insurance protects the property owner from potential title disputes or losses arising from issues such as undisclosed liens, fraud, or mistakes in public records that may affect their ownership rights. This policy remains in effect for as long as the owner or their heirs have an interest in the property.

On the other hand, lender's title insurance is primarily designed to protect the lender's investment in the property. This type of insurance ensures that the lender has a valid and enforceable lien against the property, safeguarding them against potential claims or disputes that could undermine their interest. The lender's policy typically remains in effect until the mortgage is paid off.

Understanding the distinctions between these two types of title insurance is crucial, as they serve different purposes and protect different parties involved in property transactions.