Your lender will insist that you have title insurance that insures the lender and you will be charged for this insurance.
You should also have title insurance that protects your investment outside of the lenders title insurance. When both title policies are bought from the same insurer, there is usually a discount as there is most likely some duplication between the policies. So it's probably to your advantage to go with the title insurer your lender is using. And your title company or attorney can set up title insurance for you.
More than ever it's vital for homeowners to buy title insurance as so many homes are now foreclosures and short sales and there have been some questionable practices done regarding these homes. So if there is ever an issue with the title, your insurer and not you will have to pay up.
Reference link: http://titlecompanies.net/... more