Definition
A policy protecting the lender against losses from title defects or ownership disputes. Required by virtually all lenders, it covers their interest in the property up to the loan amount.
Related Insurance Terms
Separate coverage required for properties in FEMA-designated flood zones. Standard homeowner's insurance does not cover flood damage, lenders require flood insurance for homes in high-risk zones as a condition of the mortgage.
Insurance protecting your home and personal property against damage from fire, theft, and certain weather events. Lenders require an active homeowner's insurance policy as a condition of your mortgage approval.
An optional policy protecting the homeowner against title defects discovered after closing, such as forged deeds or undisclosed liens. It's a one-time cost at closing that protects your investment for as long as you own the home.
Helpful Resources
Have a Mortgage Question?
Dan Ardis has 20+ years of experience and answers questions like this every day. Give him a call.