Escrow & Title

Which type of title insurance protects the lender's interest in the property?

AOwner's policy
BLender's (mortgagee's) policy✓ Correct
CStandard homeowner's policy
DExtended coverage policy

Explanation

A lender's (mortgagee's) title insurance policy protects the lender against title defects up to the loan amount. It is typically required by lenders and protects the lender's security interest, not the buyer's equity in the property.

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