What are the two main types of title insurance policies?

The two main types of title insurance policies are the owner's policy and the lender's policy. The owner's policy protects the buyer's investment by covering potential issues with the title that could arise after the purchase, such as undiscovered liens or ownership disputes. This policy ensures that the owner has clear title to the property and can prevent financial loss due to title defects.

On the other hand, the lender's policy protects the lender's interest in the property when a mortgage is involved. This policy ensures that the lender has a priority claim to the property in the event of a default and that the loan is secure against any title issues that may arise. The lender’s policy is often required by the lender as a condition of the mortgage agreement.

In summary, the distinction between these two policies lies in who they protect and the nature of the coverage provided, reflecting the differing interests of property owners and lenders.