What is the primary benefit of having title insurance?

The primary benefit of having title insurance is to protect against claims and defects in title. Title insurance serves as a safeguard for property buyers and lenders by guaranteeing that the title to the property is clear. This means that it provides coverage against potential issues such as liens, encumbrances, or other claims that may arise after the purchase is complete.

When a title search is conducted before closing, it may not always uncover all hidden defects, and that's where title insurance comes in. If a claim is made against the title after the purchase, the insurance protects the policyholder by covering legal fees and any potential financial losses that could arise from the defect. This provides peace of mind and a significant layer of security for both property owners and lenders, ensuring that their investment remains solid and free from unexpected challenges regarding the property's ownership.

The other options, while related to aspects of real estate transactions, do not capture the foremost function of title insurance, which is the protection it offers against title-related issues.