Escrow & Title
A Connecticut buyer receives an 'owner's title insurance policy' at closing. When a covered title defect is discovered 5 years after closing, the policy:
AHas expired since title insurance is only valid for one year
BContinues to protect the owner against the covered defect, as long as the owner or their heirs own the property✓ Correct
CCovers only up to the original purchase price
DTransfers to the new buyer when the property is sold
Explanation
An owner's title insurance policy is a one-time premium policy that protects the policyholder against covered pre-policy title defects for as long as the owner or their heirs have an interest in the property. Coverage does not expire on a time limit.
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