What is the difference between a lender’s policy and an owner’s policy?

A lender's title policy protects only the mortgage company's interest in the property, while an owner's policy protects the buyer's own equity against a title problem that surfaces after closing. The lender's policy is required on nearly every financed purchase; the owner's policy is optional but strongly recommended, and typically a one-time cost paid at closing. Without an owner's policy, a buyer has no title protection if a claim arises. Ask the closing attorney to explain both before you decide.