Who is defined as the "Insured" in a loan policy?

In a loan policy, the term "Insured" specifically refers to the Owner of the indebtedness. This individual or entity holds the financial responsibility for the loan secured by the property. The loan policy provides protection to the lender against potential losses due to title defects, liens, or other issues that may arise and adversely affect the lender's security interest in the property.

Understanding that the "Insured" in this context is the Owner of the indebtedness highlights the distinction between ownership of the property and the obligation to repay the loan. While the owner of the fee estate or other parties involved may have roles in the transaction, the Insured in a loan policy is specifically aimed at those who are financially liable for the loan, emphasizing the importance of protecting their financial interest in the event of title issues.