It's Important To Know The Difference
There are two basic kinds of title insurance:
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> Owner's coverage
> Lender's, or mortgagee, protection
Owner's title insurance ordinarily is issued in the amount of the real estate purchase and lasts as long as the insured - or his/her heirs - have an interest in the property concerned. This may even be after the insured has sold the property.
The amount of lender's title insurance decreases and eventually disappears as the loan is paid off. Most lenders require mortgagee title insurance as security for their investment in real estate, just as they may call for fire insurance and other types of coverage as investor protection.