True or False: Title defects that arise after closing are protected by title insurance.

True or False: Title defects that arise after closing are protected by title insurance.

• A. True
• B. False
• C. Only if recorded later
• D. Only if insured rider

Answer: (B)

Title insurance protects you against title problems that existed at the date the policy is issued. It does not cover defects or issues that arise after closing. If something shows up after the closing—like a new lien or a dispute that wasn’t present when the policy was written—that risk isn’t covered, unless you purchased a specific extended coverage endorsement or rider that explicitly adds post-policy protections. So the statement is false: post-closing defects aren’t protected by standard title insurance.

Title insurance protects you against title problems that existed at the date the policy is issued. It does not cover defects or issues that arise after closing. If something shows up after the closing—like a new lien or a dispute that wasn’t present when the policy was written—that risk isn’t covered, unless you purchased a specific extended coverage endorsement or rider that explicitly adds post-policy protections. So the statement is false: post-closing defects aren’t protected by standard title insurance.