What type of risk does title insurance specifically cover?

Title insurance specifically covers risks related to disputes over property ownership or defects in the title. This means it protects against issues such as undisclosed liens, disputed wills, fraud, or other claims that may arise concerning the ownership of the property. Title insurance ensures that the buyer has clear and marketable title to the property, safeguarding against financial losses that may occur due to these title defects or challenges.

Covering the other options: Natural disasters typically fall under homeowner’s insurance, which addresses damages caused by events like floods or earthquakes. Construction defects are more likely covered by builders' warranties or general liability insurance specific to construction. Personal injuries on the property are generally addressed through liability insurance rather than title insurance. Therefore, the appropriate focus of title insurance is on the integrity and legitimacy of the property title itself.