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Mortgagee's Title Insurance Policy/Owner's Title Insurance Policy |
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1) An owner's title insurance policy is good for the full amount of coverage stated on the policy for as long as the insured or his heirs have an interest in the property. The mortgagee's policy protects only for the amount owed on the mortgage loan.
2) The mortgagee's policy does not make exceptions for claims to ownership that could have been determined by physically inspecting the property.
3) The mortgagee's policy is assignable to subsequent holders of the same mortgage loan.
The cost of a mortgagee's policy (also known as a lender's policy or loan policy) is similar to an owner's policy. The title insurance premium consists of a single payment. Each time the property is sold, a new policy must be purchased. The old policy cannot be assigned to the new owner.
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