If it loses the court case, the company pays covered losses up to the face amount of the policy. Your title policy covers actual losses of the policy amount at the time of a claim. The policy amount is the sale price of the property on an owner's policy and the principal amount of the loan on a mortgagee policy. Investors who buy the new loan often require a mortgagee title policy. When you buy a house, title companies also issue an owner's policy, unless you reject it in writing.
Opinions differ on the necessity of an owner's policy.
You don't have to buy an owner's policy. An owner's title policy protects your title against the covered risk set out in the policy. The owner's policy remains in effect as long as you or your heirs own the property or are liable for any title warranties made when you sell the property. You may want to keep your policy, even if you transfer the title. You can't transfer your owner's title policy to a new owner.