Which type of policy does not insure that future real estate taxes will be promptly paid?

A Loan Policy typically provides coverage for lenders, ensuring that their investment is protected against title defects, liens, or other issues that could affect their security interest in the property. However, it generally does not extend to insuring the prompt payment of future real estate taxes. This means that while the policy protects the lender's interest in the property itself, it does not cover future obligations like tax payments that the property owner is responsible for.

In contrast, an Owner's Policy of title insurance would cover the owner of the property against issues related to the title, including certain existing liens. While it might provide peace of mind in terms of ownership rights, it similarly does not guarantee that future taxes will be paid promptly. The distinction here lies in the purpose of the Loan Policy, which focuses on the lender’s interests and ensuring that their loan is secure rather than on the performance of the owner regarding ongoing financial obligations like taxes.

A Title Insurance Policy serves as a broad category encompassing both Owner's and Loan Policies, and there is similar coverage regarding taxes. On the other hand, a Commercial Policy, aimed at insuring commercial properties or business interests, would also carry similar limitations regarding future tax payments. Ultimately, the Loan Policy is specifically designed around the lender's protections