Difference between owner and lender title insurance? An estimate says that owner insurance is optional under service you can shop for..can anyone help me understand the difference and whether I should indeed consider it optional ?

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You should get it. Usually with simultaneous issue discount (lenders and owners issued at same time by same company) it’s pretty cheap anyway. Owners title insurance is to your benefit as the owner, lenders title insurance is to lenders benefit as the lender only. So if it turns out that 3 owners ago the title wasn’t transferred properly and someone else is suddenly showing up claiming to own your house, you’ll have protection via the owners policy. If there’s only a lenders policy then the lender has protection via the lenders policy but no protection for you. Lenders policy is also typically only up to the loan amount (so, e.g., 80% of value) but for the owners policy you should get the full appraised value.

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Absolutely get it. I’ve purchased about 10 single family homes or condos. Minor issues found on those and have often considered not getting it. Going through my first commercial deal. The amount of junk on this title and the number of times this property has changed hands creates an intricate mess. I’ve had attorneys reviewing the title policies and commitment for weeks now. My attorney has found stuff several attorneys prior have not. This could have also happened on a residential lot. Pay the couple thousand.

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