Optional Title Insurance offered by the title company

[Ken Shapiro]

Hi,

I'm not sure if I should purchase this additional title insurance offered by the title company?   My lender says that as long as the property is being financed through a loan, you have title insurance that the lender carries. Do you then need this additional title insurance from the title company?

Thank You!!

[Peter Walther]

If you're asking if you should buy an Owner's Title policy, I believe the answer is yes.  A title policy, Owner's or Mortgagee's does not guarantee the Insured has good title, only that they're indemnified for a covered loss up to the coverage of the policy.  In addition, you're not an Insured under the lender's policy so you're not entitled to coverage.  Lastly, a loss under a lender's policy is defined and calculated differently than a loss under an Owner's policy.  The reasons you need to get your own policy can get involved and confusing but, in the end, as I wrote above, yes you need your own policy.