Tip of the Week: Loan Policy & Owner’s Policy

Hi, this is Daniela Adams with PM Title and this is your tip of the week. This week we are going to talk about how there are two different types of policies, a Loan Policy and an Owner’s Policy. Your Loan Policy is based on the loan amount and typically required by the lender. This protects the lender’s interest in the property should there be a problem with title. The Loan Policy is also paid for by the buyer. It does not protect the buyer. The policy amount decreases as you pay down the loan. And next is the Owner’s Policy. The Owner’s Policy is issued and based off of the purchase price. It is a one time fee paid at closing and lasts as long as you have an interest in the property. It protects you should a problem arise and may provide a legal defense. Once again, this is Daniela Adams with PM Title. Contact us at 614-991-0827.