Nearly all mortgage lenders require title insurance.It protects them against financial loss caused by problems with your home’s title, like an improperly recorded mortgage or a past lien that was never paid off. Such defects could cause your lender to lose a great deal of money in the event of foreclosure.


Title insurance would cover the mortgage lenders loss. The borrower typically pays the insurance premium at closing out of the loan proceeds. It’s important to remember that this insurance protects your lender, not you.

A separate owner’s policy must be purchased if you wish to be protected as well.