Escrow & Title
A 'lender's title insurance policy' in Florida protects:
AThe buyer against title defects
BThe lender against title defects up to the mortgage loan amount✓ Correct
CBoth buyer and lender equally
DThe title company against its own errors
Explanation
A lender's title insurance policy (loan policy) protects the lender's interest — it covers the lender for the outstanding loan balance if a title defect causes a loss. It does NOT protect the buyer's equity. Buyers need a separate owner's title insurance policy.
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