There are two basic kinds of title insurance, owner's and lender's. With the purchase of a property, you pay one premium that is all inclusive.Owner's coverage is issued at the time you purchase your property. One premium is paid based upon the purchase price or the loan amount, whichever is greater. Your full coverage will last as long as you or your heirs have an interest in the property. This is why an owner's policy is not issued when you refinance.
Lender's or Mortgagee's coverage protects the lender's investment in your property. However, this policy insures the lender against title defects that may affect the security of the mortgage loan - not your investment. The lender's title insurance policy is only in the amount of the mortgage and decreases as the mortgage is paid off. Even if the mortgage lender has a title policy, you still need an owner's title policy to protect your interest.