The title insurer reimburses the property owner for covered losses up to which amount?

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The key idea is that an owner's title insurance policy protects the owner not only against monetary losses from covered title defects but also against the costs of defending the title. When a covered loss occurs, the insurer reimburses the actual loss up to the policy’s face amount, and it also covers reasonable and necessary legal expenses incurred to defend the title against a covered claim. So the total reimbursement can be the face amount plus the legal expenses, which is why this choice is correct. Other options would limit the payout to just the face amount or introduce a deductible concept that doesn’t apply to standard title insurance.