A frequently asked question by home buyers is why should they purchase title insurance when the lender is already required to do so?

In order to understand this it is helpful to know that there are three distinct types of title insurance policies offered by Title Works Agency.

Lender’s Policy

This type of policy is required by the lender to insure the lender’s financial interest in the property. It does not offer any coverage to the property owner. It is usual for the homeowner to bear the cost of the policy.

Owner’s Policy

This policy will assure that you are protected from any defects in the title - liens, fraudulent signatures, improperly settled estates, or other encumbrances to the title - that existed prior to purchasing your policy. In effect, an owner’s policy completely shields you from any significant litigation costs arising from title problems that can remain hidden for years despite the most exhaustive search of past property records. In this way, an owner’s policy provides you, the owner, with the peace of mind in knowing that the rights to your property are fully protected. Obviously this makes it a highly worthwhile investment.

Title Guarantee 

A title guarantee protects the purchaser only as to matters discovered on the examination of the record title. Whereas, a title insurance policy insures certain defects which do not appear in the record examination.