In New York, what is the primary difference between an owner's title insurance policy and a lender's title insurance policy?
Correct Answer
A) The owner's policy covers the full purchase price while the lender's policy only covers the loan amount
The owner's title insurance policy covers the full purchase price of the property and protects the owner's equity interest, while the lender's policy only covers the outstanding loan amount and decreases as the mortgage balance is paid down.
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Previous Question
Sarah Martinez is purchasing a home in Albany, New York for $350,000. Her attorney recommends obtaining an owner's title insurance policy. In New York, what is the standard practice regarding title insurance premiums?
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Robert Chen purchased a property in Rochester, NY, and obtained an owner's title insurance policy. Two years later, a neighbor successfully proves in court that a portion of Robert's driveway encroaches on their property and must be removed. The removal and reconstruction costs $15,000. How will Robert's title insurance policy respond to this claim?