What is the name of the insurance that guarantees a lender a certain lien position on the title to a property?

The correct answer is the lender's title policy. This type of insurance specifically protects the lender by guaranteeing that they hold a superior lien position on the property title. It is essential for lenders to have this assurance because it mitigates the risk of potential claims against the title, which could compromise their investment.

When a lender issues a mortgage, they rely on the lien position to recover their money if the borrower defaults. The lender's title policy ensures that the lender is compensated for any losses resulting from undisclosed claims or defects in the title, thus providing a layer of financial security for the lender's interests in the property.

Other options, such as the guarantee against encumbrances or the owner's policy, do not specifically address the lender's financial security in the same manner. The owner's policy protects the homeowner, while a guarantee against encumbrances may not provide the same comprehensive coverage for lenders regarding their lien position. A forced policy generally refers to coverage that a lender might impose if the borrower fails to maintain insurance, which does not relate directly to title assurance.