Definition
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.
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.
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.
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