When purchasing property with a mortgage, your lender will require you to pay for title insurance that covers their investment, called Lender’s Title Insurance (LTI).
It’s insured for the principle amount of the mortgage (i.e. the amount you borrowed).
On average, the cost ranges from a few hundred to a thousand dollars.
LTI, which you’re required to purchase unless you’re a cash buyer, does NOT cover you, the owner, should an issue with title arise.
You, the buyer, can purchase Owner’s Title Insurance (OTI) if you’re interested in obtaining the same coverage the lender always requires (i.e. it’s recommended).