Which type of policy insures that the mortgage debt will be paid by the borrowers?

The correct answer is Loan Policy because this type of insurance specifically protects lenders against losses due to defects in title or issues that may affect the enforceability of the loan. A Loan Policy ensures that the mortgage debt is secure and addresses risks such as liens or encumbrances that could jeopardize the lender's investment.

In the context of mortgage financing, when a borrower takes out a loan to purchase property, the lender typically requires this policy to safeguard their interests. Should any title disputes arise or if the property does not have clear ownership, the Loan Policy will cover the financial losses incurred by the lender.

The other options do not fulfill the specific role of ensuring mortgage debt safety as effectively. An Owner's Policy is designed for the homeowner and protects them against title issues, but it does not address the lender's interests directly. A Title Policy is a broader term that can encompass various forms of title insurance, but it is not specific to mortgage debt protection. A Commercial Policy typically pertains to business-related properties and the title concerns associated with them, rather than focusing on mortgage debt. Therefore, the Loan Policy is uniquely suited for insuring that the obligations of borrowing against a mortgage will be adequately covered.