What type of policy is designed to protect property buyers?

The correct answer is owner policy because this type of insurance is specifically designed to protect property buyers from any potential issues related to the title of the property. An owner policy safeguards the buyer's financial investment in the property by covering losses due to defects in the title, such as liens, encumbrances, or other claims that may arise after the purchase.

Owner policies typically protect against a wider range of title issues than other policies, ensuring that the buyer has clear ownership of the property. This type of insurance remains in effect for as long as the buyer or their heirs hold an interest in the property.

In contrast, other options like loan policies serve to protect lenders rather than buyers, focusing on the lender’s interests in the property being financed. Title report policies generally provide information about the title status but do not offer financial protection against losses. Investment policies pertain to broader investment risks and do not specifically address title-related issues for property buyers.