Owner’s Insurance Policy and Lender’s Insurance Policy
Almost every time before or at the closing, we get the same questions about the differences between Lender’s Policy and Owner’s Policy. These are the closing costs that every buyer or borrower sees at the closing document. We understand why it’s confusing that’s why I clear this question in the video.
Lender’s Insurance Policy is required by the lender, hence, you don’t get to choose if you need it or not as it is REQUIRED.
Owner’s insurance policy is options, at least that’s what it say in the closing document. When you see the word ‘Optional’ and you see how much it costs to get Lender’s Insurance Policy you start doubting if you truly need it. ‘The owner must paid his bills on time and the title is clear from the liens?’, that’s usually what will run through your head.
You should understand that Owner’s Insurance Policy goes beyond the liens. It covers forgery, fraud, human errors and undisclosed heirs!
I am sure you won’t want to get into situation after few years of owning a property where someone tries to claim a piece of your home!
We strongly recommend to get Owner’s Insurance Policy and have a piece of mind!
For more information, go to our website.