Title insurance protects lenders and owners against loss due to disputes over the ownership of a property and a defect in title is not in search of the public.

There are two types of title insurance. The first is called the mortgagee policy or lender policy to protect the interests of the mortgage company in the property. You can also choose New Jerseys title insurance services to protect your house.

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The lender's policy is the amount of the loan outstanding at the time a claim is paid. This policy will coincide with the owner of the policy so that the issuer of the security does not pay twice for the same application.

The second title insurance type is the owner of the policy before mentioned. The title insurance policy owner's fees are issued to the owner. It can be paid by the buyer or seller as specified in the sales contract.

The owner policy ensures that the title is free of liens, encumbrances and defects with the exception of those listed as exceptions. It also usually covers losses and damages if the title is unmarketable or no access to the property.

Coverage runs from the time of purchase as long as the policyholder is the owner of the property, usually without premium.

Before issuing title insurance, the title company will perform a title search on the property. Therefore, a summary title is created, which is a summarized chronological history of the title, the list of all recorded documents affecting title.

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