Owner’s Title Insurance vs. Lender’s Title Insurance
One is required. The other is essential.
When you purchase a home in Arizona, two types of title insurance often come up during closing: Lender’s Title Insurance and Owner’s Title Insurance. While they sound similar, they protect very different interests. Understanding the difference can help you make an informed decision and protect your investment.
Lender’s Title Insurance – Protecting the Lender’s Interest
If you’re taking out a mortgage, your lender will require Lender’s Title Insurance.
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What it covers: Protects the lender’s financial stake in your property.
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Why it’s required: The lender wants to be sure their investment is secure if a title problem arises.
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Who pays: Typically, the buyer pays for this policy at closing.
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How long it lasts: Until your mortgage is paid off.
In short, Lender’s Title Insurance doesn’t protect you as the homeowner — it protects your lender.
Owner’s Title Insurance – Protecting Your Rights
Owner’s Title Insurance is an optional (but highly recommended) policy that protects your equity and ownership rights.
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What it covers: Protects you from financial loss due to hidden title defects — unpaid taxes, liens, fraud, errors in public records, or undisclosed heirs.
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Why it’s essential: Without it, you could be responsible for resolving these costly problems yourself.
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Who pays: Usually purchased by the buyer for a one‑time premium at closing.
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How long it lasts: For as long as you own the property.
With Owner’s Title Insurance, you can rest easy knowing your home — and the equity you’ve built in it — is protected from unexpected challenges.
Why You Need Both
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Lender’s Policy: Protects the lender’s investment.
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Owner’s Policy: Protects your investment.
Together, they provide comprehensive protection for both the mortgage holder and the homeowner.
✅ Bottom Line: Your lender requires a policy to protect their interest. Protect yourself, too, with Owner’s Title Insurance — it’s the smart way to safeguard your home and your financial future.
Arizona Premier Title makes it simple to secure both policies, guiding you through the process so you close with confidence. If you’re buying, selling, or refinancing in Arizona, we’re here to protect your property rights.