ARE THERE DIFFERENT TYPES OF TITLE INSURANCE POLICIES?

Yes. Basically there are two different types of policies an owner's policy and a loan policy. The following is a definition of the common types of policies:

OWNER'S TITLE INSURANCE POLICY
An owner's title insurance policy protects the insured owner while he owns the property. It also protects the insured after he sells the property, from any loss he many suffer due to the warranty of title contained in the deed which he signs when his sale is made. The premium is paid only once for this protection. The policy guarantees that at the date the deed was filed of record putting title in the insured, the title was free of defects, except those shown in the policy. It guarantees up to the face value of the property. Title insurance protects the buyer by guaranteeing that the title is legally transferable.  The policy does not guarantee the actual amount of land.

LOAN TITLE INSURANCE POLICY
Used for people or companies that lend money. Protects the Lender's lien priority and protects the lender's interest in the property as security for the outstanding balance under the buyer's mortgage.   A Loan title insurance policy guarantees to the insured Lender that he has a valid enforceable lien on the property. The amount of coverage decreases as the note is paid off. It does not guarantee anything to the property owner and provides him no recourse to the title company should the title prove defective. If the mortgagee policy holder should foreclose, then the policy would become an owner's title insurance policy to him.