Humber/Ontario Real Estate Course 4 Exam Practice 2026 – The Comprehensive All-in-One Guide for Exam Success!

The terms "owner policy" and "loan policy" are indeed most commonly associated with title insurance. An owner policy protects the home buyer, ensuring that they have clear ownership of the property and are safeguarded against any future claims or issues related to the title. On the other hand, a loan policy is intended for the lender, protecting their investment in the property by covering the amount still owed on the mortgage. Title insurance ensures that any defects or issues that were not identified during the property transfer are handled, providing peace of mind to both the owner and the lender.

The other types of insurance mentioned do not specifically use the terminology "owner policy" and "loan policy". For instance, mortgage insurance deals primarily with protecting lenders from default on loans rather than title issues, and commission trust accounts, liability insurance, and home warranties serve different purposes within the real estate ecosystem, but do not pertain to ownership and title security in the same manner as title insurance does.