What type of insurance protects against title defects and ownership disputes?

Title insurance is specifically designed to protect property owners and lenders from financial loss due to defects in a title to a property. This type of insurance covers issues that may arise, such as claims against the title, discrepancies in the title record, unpaid liens, or disputes over ownership rights. When a buyer purchases a property, title insurance provides peace of mind, ensuring that any unforeseen title issues that may surface after the purchase will be covered by the insurance policy.

In contrast, liability insurance protects individuals from claims resulting from injuries or damage to others, homeowners insurance covers damages to personal property and liability for injuries occurring on the property, and flood insurance protects against water damage resulting from flooding. Each of these other types of insurance serves a different purpose and does not provide the same level of protection against title-related issues as title insurance does.