Title insurance protects against defects in title existing at the time of the policy — a prior lien, a gap in the chain, a forged instrument, an unrecorded interest. Unlike other insurance it looks backwards, not forwards, and is paid once.
The document that matters is the commitment, and within it Schedule B: the exceptions. Anything listed there is not covered. Standard exceptions commonly include matters an accurate survey would disclose, rights of parties in possession, and unrecorded easements — and each can be removed, sometimes for a premium and sometimes by providing a survey or an affidavit.
The negotiation is therefore about exceptions, not about the policy amount. A buyer who reads Schedule B during the due diligence period can require the seller to clear items before closing. One who reads it afterwards owns them.
Owner’s and lender’s policies are separate. A lender’s policy protects the lender’s interest only, and declines as the loan is repaid. A buyer relying on the lender’s policy is insured for nothing.