Which policy type would typically protect an owner's interest in real property?

Which policy type would typically protect an owner's interest in real property?

• A. Deed
• B. Title Insurance Policy
• C. Mortgage
• D. Abstract of Title

Answer: (B)

An owner's title insurance policy protects the owner's interest in real property by insuring against losses from defects in the title that aren’t found through normal searches. It covers issues like forged documents, undisclosed liens, misindexing, or other title problems that could cloud ownership, up to the policy amount, and it typically covers defense costs if a covered claim arises. This protection lasts as long as the owner or their heirs have an interest in the property, regardless of changes in value or ownership. A deed is simply the document that transfers ownership; a mortgage is a loan that creates a lien on the property; and an abstract of title is a summarized history of the title—useful information, but it does not provide insurance protection.

An owner's title insurance policy protects the owner's interest in real property by insuring against losses from defects in the title that aren’t found through normal searches. It covers issues like forged documents, undisclosed liens, misindexing, or other title problems that could cloud ownership, up to the policy amount, and it typically covers defense costs if a covered claim arises. This protection lasts as long as the owner or their heirs have an interest in the property, regardless of changes in value or ownership.

A deed is simply the document that transfers ownership; a mortgage is a loan that creates a lien on the property; and an abstract of title is a summarized history of the title—useful information, but it does not provide insurance protection.