Escrow & Title
What is 'gap insurance' in the context of Hawaii vehicle loans compared to Hawaii real estate title insurance?
AA. They are the same product with different names for different asset types
BB. In real estate, gap coverage protects against title defects arising between the title search date and recording; in auto lending, gap insurance covers the difference between car value and loan balance after a total loss✓ Correct
CC. Gap insurance is only available for commercial real estate in Hawaii
DD. Real estate gap insurance is purchased separately from title insurance in Hawaii
Explanation
These are different products. In real estate, title insurance gap coverage protects against title defects in the window between title search and recording.
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