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There are two types of title insurance polices, the owner's policy and the lender's policy. When you buy a home, it is advised to arrange to buy title insurance which will cover your interest in the property being purchased. The limit of this owner's policy will generally be for the market value of the house at the time of the purchase. If you will be obtaining a mortgage on the property, your lender will require a lender's policy to protect their interest in the property. The lender's policy will be written for the amount of the mortgage. You may ask why two policies are necessary to insure the same piece of property or you may be wondering if you have to pay 2 separate title insurance premiums. In most cases, you will pay for the two policies together and this cost will be discounted for the duplicate cover when the policies are issued simultaneously.  .Many states also require credit to be given to the title policy buyer, if there has been a previous policy issued to the buyer of seller of the property and it is made known to the title company.

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