Mortgagee's Title insurance question

[Sue Ellen]

Hi, I'm refinancing my home and have drafted a buy-out with my ex- through a promissory note with a payment plan with interest. His legal documents have come back request to get a mortgagee's title insurance. My lawyer advised that it's extra and not necessary really but we're really just not understanding conditions for when this would be invoked and truly needed. How critical is this mortgagee's title insurance? If absolutely necessary, I have funds to pay him back and acknowledge he's a creditor just like the bank so i don't understand all of this extra title insurance. If anyone can help me understand this to tip decision one way or another, it'd be super helpful. Thank you!