Kansas Title Insurance Practice Test - Prep, Study Guide & Practice Exam

The two most common types of title insurance are owner's policies and mortgage policies. An owner’s policy protects the property owner against any title defects or claims that may arise after the purchase, ensuring that their ownership rights are secure. This type of insurance covers issues like undiscovered liens, fraud, or errors in the public record that could affect the ownership of the property.

On the other hand, a mortgage policy (also known as a lender’s policy) is designed to protect the lender’s investment in the property. It assures the mortgage lender that the title to the property is clear of any issues that could impact their security interest. This policy typically remains in effect for the duration of the loan, ensuring the lender is protected until the mortgage is fully paid off.

Other options may include terms that vary from the standard definitions within the title insurance industry. Warranty policies, for instance, refer more to types of real estate transactions and sellers’ obligations rather than directly to title insurance. Homeowner's and commercial policies can also exist but are not as widely recognized as the primary types of insurance protecting against title defects, which reinforces why the correct answer centers on owner’s policies and mortgage policies.