Title insurance protects against which issue?

Title insurance protects against which issue?

• A. Protection against unpaid liens prior to purchase
• B. Protection against property value depreciation
• C. Protection against zoning violations
• D. Protection against flood damage

Answer: (A)

Title insurance protects the ownership of the property by covering losses from defects or claims against the title that existed before the policy date. This includes liens or encumbrances that were not discovered during the title search. If an unpaid lien tied to the property arises after purchase, the title insurance helps to resolve the issue or compensate the owner, ensuring clear title. The other options describe risks that are not title defects—property value depreciation, zoning violations, and flood damage are physical or regulatory/market risks, not issues with the title itself.

Title insurance protects the ownership of the property by covering losses from defects or claims against the title that existed before the policy date. This includes liens or encumbrances that were not discovered during the title search. If an unpaid lien tied to the property arises after purchase, the title insurance helps to resolve the issue or compensate the owner, ensuring clear title.

The other options describe risks that are not title defects—property value depreciation, zoning violations, and flood damage are physical or regulatory/market risks, not issues with the title itself.