Why a closing disclosure often shows two separate title insurance lines
A common source of confusion at closing is seeing both a lender's title policy, often around $600, and an owner's policy, often around $1,100, on one closing disclosure for one house. In many markets it is customary for the seller to pay for the owner's policy, which can make the buyer's line for the lender's policy look like an odd extra charge. The lender's policy protects the lender's interest in the loan amount, not the buyer's equity, which is why it does not by itself protect the purchaser. The owner's policy is what protects the buyer's own interest in the property against title defects that were not caught at closing, and it is optional to purchase in most states, though it is generally worth keeping rather than skipping, since the couple hundred dollars difference between the policies is small compared to the cost of a real title dispute later. It is accurate that most owner's policies are never used, which is the same logic that applies to most kinds of insurance.
