Owner's vs. Lender's Title Policy

[Mitch Kronowit]

I'm a little confused as to why someone would purchase an Owner's Title Policy. The standard line is that the mandatory Lender's Policy only covers the lender, so it's a good idea to get an Owner's Policy to cover yourself. Ok, so far?

The confusion is that any claim against the Owner's Policy would coincide with a claim against the Lender's Policy, correct? IOW, if there is a problem with the title, both the owner and lender stand to lose on the house. However, if the title is checked and a policy issued for the lender, how likely is it a claim will ever be made??? (I read somewhere $0.04 of every title dollar goes to paying claims, which still sounds super high). And if the chance of a claim being made is very low (after all, the title search/check should almost guarantee the title company NEVER has to pay a claim), is having an Owner's Policy offering any real protection???

Finally, is the necessity for and Owner's Policy (if any) proportional to the equity the owner has in the property, i.e., stands more to lose?

I'm sure I could have worded this better, but it's late and I'm tired so I'll just throw this out there for now. Thanks.