What type of insurance is specifically designed to cover defects in title?

Title insurance is specifically designed to cover defects in the title of a property. This type of insurance protects property buyers and mortgage lenders from potential losses due to issues such as liens, encumbrances, or defects that may not have been discovered during the title search process before the property was purchased.

Title insurance provides vital financial security by addressing risks associated with ownership claims or disputes over property rights that could arise after the purchase. Unlike other types of insurance that are designed for continuous risks or liabilities, title insurance is a one-time premium that remains effective as long as the insured holds an interest in the property. This unique aspect of title insurance underscores its essential role in real estate transactions, ensuring that buyers can obtain clear ownership free of unexpected legal challenges.

In contrast to the other types of insurance listed, such as liability insurance, homeowner's insurance, and property insurance, title insurance specifically targets the complexities and risks associated with property titles.