Title insurance provides protection against financial loss which could result from defects or claims against your property.
There are two types of policies: an owner policy, which provides protection to the property owner, and a mortgagee (or loan) policy, which offers protection to the mortgage lender and its assigns.
These two policies are separate and distinct. If the lender requires title insurance as a condition of making a mortgage loan, it is the lender who is insured, not the owner, even though the lender’s title policy is usually paid for by the buyer.
If the owner wishes title insurance, a separate policy must be purchased.
The new owner can, however, reduce the cost by purchasing the two policies simultaneously. When an owner policy is purchased from VATC, there is no additional charge for a policy insuring the lender’s interest provided the amount of that policy does not exceed the amount of the owner’s coverage.