Title insurance is an important tool that helps to protect the ownership of a property and mitigate the risk of loss or damage resulting from issues with the title. However, there are two main types of title insurance: owners title insurance and lenders title insurance. Here are some key differences between these two types of title insurance.

Purpose: The main difference between owners title insurance and lenders title insurance is the purpose for which they are purchased. Owners title insurance is purchased by the owner of the property and protects their ownership interests in the property. Lenders title insurance, on the other hand, is purchased by the lender (typically a mortgage lender) and protects their interests in the property as collateral for the loan.

Coverage: Owners title insurance and lenders title insurance can provide different types and levels of coverage. Owners title insurance typically provides broader coverage that protects against a wider range of issues with the title, such as errors in the public records, undisclosed liens, or defects in the title. Lenders title insurance, on the other hand, is typically more limited in scope and only covers issues that could affect the lender's interests in the property.

Cost: The cost of owners title insurance and lenders title insurance can also differ. Owners title insurance is typically more expensive, as it provides broader coverage and protects the owner's interests in the property. Lenders title insurance, on the other hand, is typically less expensive, as it provides more limited coverage and only protects the lender's interests in the property.