Escrow & Title

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

AOwner's policy
BLender's policy (mortgagee's policy)✓ Correct
CGap coverage
DStandard coverage

Explanation

A lender's (mortgagee's) title insurance policy protects the lender against title defects. It covers the loan amount and decreases as the loan is paid down. A separate owner's policy is needed to protect the buyer.

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