Title Insurance

[Venkat Raghavan]

Hello BPers,

I am in the process of purchasing a rental unit for 62k and I am having a friend of mine finance it (Deed for 40k). He is not too adamant with the title ins, unlike lenders.

Since I am going to get a title insurance for full worth of the property 62k, shoudl I take another policy for 40k ?? wouldnt owners title ins policy protect 62k and when incident happens and ins. co. pays out, 62 gets paid and I pays off his lien ?

Pls answer - Closing is on Monday and I need to solve this before Friday.

Thanks
R