Why does the lender have to have a new title insurance policy every time I do a transaction?

Lender’s title insurance policies insure the lender’s interest in the property up to the face amount of their loan. The policy is only applicable to the specific transaction, and it provides coverage for the mortgage lien and it protects against errors made in the title search connected with that transaction, as well as any pre-existing clouds on title. Therefore, each new lender will want a lender’s policy that is specific to their transaction.