There are two types of title insurance
- Owners Policy: Protects the buyer should a covered title problem arise after you own the home. Typically issued in the amount of the purchase and purchased for a one-time fee at closing. It last for as long as you have interest in the property.
- Loan Policy: Protects the lender’s interest in the event there is a problem with title and is usually based on the amount of the loan.
Possible title problems: errors or commissions in deeds, mistakes in examining records, forgery and undisclosed heirs.