The title insurance loan policy protects the buyer’s lender from any unforeseen claims against the property title but it does not protect the buyer or new homeowner. The owner’s policy of title insurance is purchased at closing to protect the buyer from any unforeseen claims against the title. 

According to ALTA, while most homeowners have a title insurance loan policy protecting their lender, an estimated 40 percent of U.S. homeowners, representing 48.8 million homes, do not have an owner's policy of title insurance to protect their investment.