What does title insurance protect against?

Title insurance specifically protects against loss from defects in the title of a property, which can include issues such as liens, encumbrances, or claims from previous owners that were not discovered during the title search. When a buyer purchases property, the insurance ensures that they will be financially protected if a title issue arises after the purchase, thereby providing peace of mind and security concerning the ownership rights of the property. This protection is crucial because title defects can impact the buyer’s investment and their ability to fully enjoy or sell the property in the future.

The other options relate to issues that title insurance does not cover. Transaction delays can arise from various administrative or legal processes but are not related to title defects. Market fluctuations refer to changes in property value due to economic conditions and do not pertain to the ownership rights guaranteed by the title. Tenant disputes involve disagreements between landlords and tenants, which are managed through lease agreements and property management practices rather than title insurance coverage.