[Bonanza]

Originally Posted by 784caroline

So the amount that you bought also covers the mortgage amount

A lender's policy is completely different and separate
from the other title insurance policies.
It benefits only the lender and you have to pay for it.
The lender requires it; otherwise you don't get the loan.
And yes -- it is based on the mortgage amount, not the sales price.

In addition to that policy, as a buyer,
there is an owner's policy which is completely separate.

Hopefully, this answers your question.