How Long Does Homeowners' Title Insurance Last?

There are two types of homeowners' title insurance. One protects the mortgage company, and the other protects the homeowner. The amount of coverage and length of coverage is different for each type of policy. A homeowner's title insurance premium is paid once and is usually included in the closing costs at the time of purchase.

Lender Policy

When a homeowner receives a mortgage for her home purchase, she is usually required to purchase a lender title insurance policy. This policy protects the lender in cases when a claim against the property voids the title to the home. The homeowner's title policy has a value equal to the principal balance of the mortgage and remains in effect for the entire length of the loan.

Owner Policy

The second type of homeowner title insurance is known as an owner policy. This is optional insurance to protect the homeowner in the event of claims against the property that were not discovered as part of the original title search. The policy value is usually equal to the value of the property when it was purchased. The owner's policy remains in effect as long as you own the property.