Do I Need Title Insurance?

In Massachusetts you are required to purchase a policy for the lender. However, it is up to you to decide if you want a policy for yourself.

Generally, there are two forms of title insurance. Lender's title insurance, required by most lending institutions, is normally written in the amount of the mortgage and protects the lending institution from losses resulting from title defects.

The lender's insurance expires when the mortgage is repaid. The second form of title insurance is known as an owner's title policy. It usually is written for the amount of the purchase price of the home. This protection starts the day of the closing and lasts as long as you or your heirs retain an interest in the property.

Unlike other insurance premiums, your title insurance premium is paid only once, at the closing. By purchasing owner's and lender's protection simultaneously, substantial savings in title insurance premiums can be realized.

After all fees have been paid and documents signed and notarized at the closing, you will receive a copy of each and, most importantly, the title to your house.

Ask your attorney to further explain the value of having a home owner's policy.

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