🛡 Owner’s Policy vs. Lender’s Policy: What’s the Difference?

When buying a home, you’ll likely come across two types of title insurance: owner’s and lender’s. While they sound similar, they protect different interests — and understanding the difference is key to protecting your investment.

🏡 Owner’s Policy

An owner’s policy protects you, the buyer, from any title issues that may arise after the purchase — like undiscovered liens, claims of ownership, or filing errors. It’s a one-time cost that lasts as long as you or your heirs own the property. Think of it as peace of mind that your ownership is secure.

🏦 Lender’s Policy

A lender’s policy protects the mortgage company, not you. It ensures their investment is protected if a title problem emerges. Most lenders require it as part of the closing process, and it only covers the loan amount — not your equity in the property.

✅ Do You Need Both?

Yes. If you’re taking out a mortgage, your lender will require a lender’s policy — but that won’t cover your personal interest in the home. Purchasing an owner’s policy is the best way to make sure you’re protected too.

At MBS Title, we help buyers understand exactly what they’re getting — and why it matters. Have questions about your options? We're here to help.