Escrow & Title

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

AOwner's title insurance policy
BLender's (mortgagee's) title insurance policy✓ Correct
CBuyer's title insurance policy
DHomeowner's title insurance policy

Explanation

A lender's (mortgagee's) title insurance policy protects the lender's interest up to the loan amount. Most lenders require this as a condition of the loan. The owner's policy separately protects the buyer's equity interest.

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