What does title insurance primarily protect a property owner against?

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Multiple Choice

What does title insurance primarily protect a property owner against?

Title insurance protects the owner's ownership rights by guarding against problems in the title itself. It covers defects that could have affected ownership if discovered before closing but were not found by a title search, such as forged or altered documents, incorrect recording, undisclosed liens, or competing claims of ownership. If a hidden title problem surfaces later, the policy provides defense costs and, if needed, compensation for the loss of title or the clearing of the title. It does not insure against damage to the physical property, nor against events like acts of God such as earthquakes or floods.

Title insurance protects the owner's ownership rights by guarding against problems in the title itself. It covers defects that could have affected ownership if discovered before closing but were not found by a title search, such as forged or altered documents, incorrect recording, undisclosed liens, or competing claims of ownership. If a hidden title problem surfaces later, the policy provides defense costs and, if needed, compensation for the loss of title or the clearing of the title. It does not insure against damage to the physical property, nor against events like acts of God such as earthquakes or floods.

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