Which type of title insurance is good for the full amount of coverage as stated on the policy and for as long as the owner has an interest in the property?

• A. Extended coverage
• B. Standard coverage
• C. Subrogation
• D. Encroachments

Answer: (B)

The key idea is that an owner’s title policy protects the owner's interest in the property up to the policy amount for as long as the owner has an interest. Standard coverage is the baseline form of an owner’s title policy that provides protection for the full stated amount and remains in effect for as long as you own the property. Extended coverage adds extra protections for risks not found by a standard title search, but both still cap at the policy amount and require ownership to stay in place. The other options aren’t types of title insurance policy: subrogation is a claim process used by insurers, and encroachments describe a risk that can be covered under extended coverage but isn’t a separate policy type. Therefore, standard coverage best fits the description.