Mortgage lenders require title insurance on every loan they close which protects them against problems with the title. However, this type of insurance does not protect the homeowner’s investment in the home.
The owner’s policy is separate and typically issued when the property is purchased. Even Clark Howard, the thriftiest person in Georgia, recommends getting owner’s title insurance! The Georgia Association of Realtors standard contract’s, default clause is that the buyer requests an enhanced policy be issued at closing.
When an owner’s and lender’s policy are issued at the same time, there is a significant discount on the premiums. It’s the smart and safe way to go.