A title owner's policy provides coverage for which of the following?

A title owner's policy provides coverage for which of the following?

• A. It protects against losses from title defects not discovered by the title search
• B. It insures the mortgage
• C. It insures the property against physical damage
• D. It guarantees a rental income

Answer: (A)

A title owner's policy protects the owner against losses that arise from title defects not discovered by the title search. It covers hidden risks in the chain of title—such as forged signatures, undisclosed heirs, errors in public records, or claims by others to the property—that could affect ownership and the value of the title. The policy can also help cover the costs to defend the title and, if needed, compensate for the loss of title up to the policy amount. It does not insure the mortgage (that’s a lender’s policy), it does not insure the property for physical damage (that’s homeowners insurance), and it does not guarantee rental income.

A title owner's policy protects the owner against losses that arise from title defects not discovered by the title search. It covers hidden risks in the chain of title—such as forged signatures, undisclosed heirs, errors in public records, or claims by others to the property—that could affect ownership and the value of the title. The policy can also help cover the costs to defend the title and, if needed, compensate for the loss of title up to the policy amount. It does not insure the mortgage (that’s a lender’s policy), it does not insure the property for physical damage (that’s homeowners insurance), and it does not guarantee rental income.