Finance

An Iowa home buyer's lender requires title insurance as a condition of the loan. Which policy does the lender require?

AOwner's title insurance policy
BLender's (mortgagee's) title insurance policy✓ Correct
CHomeowner's insurance policy
DFlood insurance policy

Explanation

Lenders typically require a lender's (mortgagee's) title insurance policy to protect their security interest. This is separate from an owner's title insurance policy, which the buyer may optionally purchase.

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