What type of claims can title insurance protect against?

Title insurance primarily protects against claims related to ownership disputes. This includes issues such as claims from previous owners, unpaid liens, fraud or forgery in the documents affecting ownership, and other rights or claims against the property that could arise after the completion of a sale or transfer of title. Essentially, title insurance ensures that the new owner has a legitimate claim to the property and that no unforeseen ownership claims could jeopardize their investment.

The focus of title insurance is to verify and guarantee the status of the title at the time of the transaction. By protecting against ownership disputes, title insurance provides security and peace of mind for both buyers and lenders, knowing that if a claim arises, they are financially protected.

The other options pertain to various risks that are outside the scope of title insurance. Property damage, natural disasters, and contractor disputes are typically covered by other types of insurance, such as homeowners insurance or liability insurance, rather than title insurance, which specifically focuses on the legal aspects of property ownership.