Why is it Important to Have Owner's and Lender's Title Insurance?

You know it’s important to have title insurance. Title insurance protects your home from claims against the title. If there is something wrong with the title and you have title insurance, it means the title company will be paying for any fees legal or otherwise. If you don’t have title insurance, you’ll be paying out of pocket. Depending on the nature of the claim, this can be a hefty expense.

But did you know there are actually two kinds of title insurance? The two kinds of insurance are owner’s title insurance and lender’s title insurance.


Owners Title Insurance – Protects the property owner from any claims against the title.

Lenders Title Insurance – Protects the lender (mortgage company) from any claims against the title.


It’s important to be aware that because both you and your lender have a stake in your home (until you pay off your mortgage), both parties are vulnerable to claims against the title. So if someone were to file a claim against the title of your home, both you and your mortgage company are vulnerable. This is why it’s important to have both kinds of title insurance.

When you close on your house, you pay for lender’s title insurance, but it’s a good idea to insure yourself as the owner with owner’s title insurance as well. That way, you’ll both be protected, and your title company will pay the costs associated with any claims on your title that turn out to be valid.

kinds of title insurance

About Colony Title Associates:

Founded in 1995, Colony Title Group handles in excess of 2000 real estate closings per year in the central Maryland area. The founder Tee Tillman has over 23 years experience in the title and real estate law fields. Colony handles closings for several lenders, including banks, credit unions and mortgage brokers. Colony is the preferred choice for many real estate brokers in the Baltimore area. If you have any questions concerning issues that Baltimore title insurance protects you from, feel free to contact us at 410 884-1160 or visit ColonyTitle.com today!

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