Quote:
Originally Posted by thebix
I believe (not being certified on the details), If you didn't opt to pay extra for an owners policy then the insurance your lender required you to buy expired when the loan was paid off.
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This is right. If you get a mortgage, the lender will require that you pay for a lender title insurance policy that protects the bank in the event it’s collateral, the property, has a claims against its title.
Homeowners are not protected by the lender title policy. Instead, buyers will be given the option when the title work is being done to purchase a separate owner’s title insurance policy, which protects the homeowner if there is ever a claim against the title (regardless of whether there is still an outstanding mortgage).
If one doesn’t have the owners title insurance policy, there is no coverage for the homeowner.