What does title insurance protect against?

Title insurance primarily protects against losses due to defects in the title to real property. This encompasses a variety of potential issues, such as liens, encumbrances, or ownership disputes that may not be discovered during the title search process prior to closing. Buyers of title insurance are essentially safeguarding their investment by securing against claims that could arise from these defects, which might affect their legal rights to the property.

The other options presented do not align with the specific protections provided by title insurance. For instance, natural disasters may lead to property damage, but they are typically covered by other forms of insurance, like homeowner's insurance. Similarly, unforeseen property taxes and disputes over land use involve different areas of law and are not covered under a title insurance policy. Title insurance is focused solely on the integrity and validity of the title itself, highlighting the importance of understanding its role in real estate transactions.