Escrow & Title
What is the difference between an owner's title insurance policy and a lender's title insurance policy?
AThey are identical policies
BAn owner's policy protects the buyer's equity; a lender's policy protects only the lender's loan amount✓ Correct
CAn owner's policy protects against defects; a lender's policy does not
DOnly lender's policies are required in Idaho
Explanation
An owner's title insurance policy protects the buyer's equity interest for as long as they or their heirs own the property. A lender's (mortgagee's) policy protects only the lender's loan amount and declines as the loan balance is paid down. Both cover title defects existing at the time of purchase.
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