What is title insurance and why does my lender make me get it?

Updated March 13, 2023.

There are various types of title insurance. The type of title insurance required by a mortgage lender is called “mortgagee” insurance. This insures your lender from any financial loss if a problem is discovered in the future with respect to your title to the property. Your lender requires you to get this policy to protect their interest in your home as security or collateral for the money they are lending you to buy the home. This insurance does nothing to protect you or your interest in the property.

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