Schaub Team Blog
Understanding Title Insurance: A One-Time Investment for Lasting Protection
Posted by Jamie Jewell on Apr 04 , 2025 - 10:33 am
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Unlike many other types of insurance, title insurance is a one-time purchase made at closing, offering long-term peace of mind. There are two primary types of title insurance policies, each serving a distinct purpose:
- Owner’s Title Insurance – This policy protects the buyer against any claims or defects in the property’s title that may have existed before the purchase. In Michigan, this cost is often covered by the seller, unless the Buy-Sell Agreement specifies otherwise.
- Lender’s Title Insurance – This policy safeguards the lender by ensuring their first lien position in case of foreclosure. While it provides similar protection against title defects, it does not extend coverage to the buyer. The buyer typically pays for the lender’s title insurance policy as part of their closing costs, since it directly protects the lender’s interest in the property.
Both policies play a crucial role in securing a real estate transaction, ensuring that both buyers and lenders have legal protection against any hidden title issues. Investing in title insurance means safeguarding your property rights with a single payment that lasts for as long as you own your property.
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