Which statement about title insurance coverage is most accurate?

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Title insurance coverage varies by policy type, with some policies offering only basic protection and others providing extended coverage that reaches beyond what’s shown in the public records. A standard CLTA policy generally protects against title defects revealed by the public-record search, but it does not automatically cover issues that aren’t recorded. ALTA policies, especially in their extended or enhanced forms, can include coverage for matters that aren’t strictly in public records if they’re uncovered through other means—such as what you see during a physical inspection, information you gather from occupants, or a current survey of the property. This broader scope is why the statement about ALTA policies potentially covering matters disclosed by physical inspection, occupant inquiry, or a current survey is the most accurate. The other options misstate the scope of coverage or the differences between policy types.