What does title insurance protect against?

Title insurance protects property owners and lenders from potential defects in title that were not discovered during the title search process. This includes issues such as liens, claims, or encumbrances that may exist and could affect ownership rights or the ability to sell the property in the future. When a title policy is issued, it provides coverage for these unforeseen risks that could arise, ensuring the policyholder has legal ownership and can enjoy their property without the threat of losing it due to past issues that were not identified.

The other options relate to different types of insurance or risk management. For instance, future changes in property value are influenced by market conditions and are not something title insurance covers. Similarly, loss of rental income is tied to market dynamics and tenant situations rather than title issues, and natural disasters are typically covered by hazard or flood insurance, not title insurance. Each of these options addresses different aspects of property ownership and risk, but they do not fall under the scope of what title insurance is designed to protect against.