Question

What differentiates the coverage duration between an owner's policy and a lender's policy in title insurance?

A) The owner's policy remains in effect until the loan associated with the property is repaid, while the lender's policy remains valid as long as the property owners or their heirs possess the property.
B) The owner's policy remains valid until the loan is repaid, while the lender's policy remains in effect as long as the property owners or their heirs own the property.
C) The owner's policy remains in effect until the property owners or their heirs own the property, while the lender's policy remains valid until the loan is repaid.
D) The owner's policy remains valid until the property is sold, while the lender's policy remains in effect as long as the property owners or their heirs possess the property.

Answer 1

The owner's policy remains valid until the loan is repaid, while the lender's policy remains in effect as long as the property owners or their heirs own the property.

Step-by-step explanation:

The correct answer is B) The owner's policy remains valid until the loan is repaid, while the lender's policy remains in effect as long as the property owners or their heirs own the property. In title insurance, an owner's policy protects the property owner's interest in the property. It remains valid until the loan associated with the property is repaid. On the other hand, a lender's policy protects the lender's interest in the property. It remains in effect as long as the property owners or their heirs possess the property, regardless of whether the loan is repaid or not.