Transfer of PropertyQuestion 91 of 120
Title insurance protects the insured against:
a.Future physical damage to the property
b.Declines in market value
c.Defects in title existing at the time of the policy
d.Failure to pay the mortgage
Explanation
Title insurance indemnifies the insured against losses from title defects, liens, or encumbrances that existed but were undiscovered when the policy was issued. It is a one-time premium covering past title problems, not future events. Lenders typically require a lender's policy at closing.
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