Escrow & Title
When a South Dakota property is 'double insured' (buyer and lender each have title insurance), both policies cover:
AIdentical risks up to the same maximum amount
BDifferent interests: owner's policy covers buyer's equity; lender's policy covers the loan balance✓ Correct
CThe same interest but from different angles
DOnly the lender's interest — the owner's policy is redundant
Explanation
The owner's title insurance policy protects the buyer's equity. The lender's policy protects the outstanding loan balance. They cover different interests and are both appropriate in a financed transaction.
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