Which type of policy insures a lender's position in a Deed of Trust?

The loan policy is the correct answer as it specifically insures a lender’s investment in a Deed of Trust. When a lender provides financing for a property, they want assurance that their investment is secure; the loan policy offers protection against potential claims or defects in the title that could affect the lender's rights. This type of policy ensures that the lender’s priority position in the event of a default or other title issue is maintained, effectively protecting the lender’s financial interest in the property.

Other types of policies serve different purposes. For instance, an owner's policy protects the property owner against losses related to title issues but does not cover the lender’s interests. A leasehold policy is tailored for leasehold interests in property and does not pertain to the lender’s position in a Deed of Trust. The standard policy is a more general designation and does not specifically refer to the nuanced categories like lender or owner policies. Therefore, the loan policy uniquely fits the context of insuring a lender's position.