Business and Personal Finance Dictionary

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• LENDER'S TITLE INSURANCE
  
  A policy of Title Insurance which covers the interest of a lender on a mortgage registered on title to a property. This coverage protects the lender, not the buyer, and the coverage decreases as the mortgage is paid. This will protect the lender's interest as long as there is a mortgage. An Owner's Title Insurance Policy protects the buyer, and his heirs, up to the full amount of the policy. It is a one-time fee and it is paid at the time of settlement. The policy is based on the mortgage amount and insures the lender's security interest in the property if there is a loss due to defects in the title that were not discovered at the time of settlement. The LENDER'S POLICY does not offer any protection to the homeowner.
  
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