Lender's Title Insurance

A lender's policy protects the mortgage lender if someone challenges a property title based on any title defects that were unknown when the policy was purchased.

When a buyer obtains a mortgage in order to purchase their new home, it is usually a loan requirement that the buyer obtain a Lender’s Title Insurance Policy.

The coverage doesn’t provide any protection for the buyer. If there is a complete failure of title, the buyer may have no protection and may lose both the property and the equity in the property. The buyer could also incur legal fees and any tax penalties assessed against the property.

A buyer should never presume that the lender obtained title insurance for them.


Not insured by NCUA or any federal government agency. Not a deposit of or guaranteed by a credit union or credit union affiliate. May lose value.