Lender's Title Insurance
Required by mortgage lenders to protect their interests against hidden risks to the title. This policy is in effect for the life of the loan and does not extend protection to the homeowner.
Mortgage lenders require lender's title insurance, also known as a loan policy, to protect their interests against any hidden risks or defects in the title. Lender's Title Insurance is effective for the life and the size of the loan with coverage gradually decreasing as the loan is paid off. Lender's title insurance does not protect the homeowner from potential title issues although it is usually paid for by the homeowner at closing.