What type of insurance protects against loss from defects in property title?

Title insurance is a specialized form of insurance designed to protect property owners and mortgage lenders from financial loss due to defects in a property's title. These defects may include issues such as liens, encumbrances, fraud, or errors in public records that could affect the ownership rights of the property. When purchasing a property, having title insurance ensures that if any title problems arise after the purchase, the insured party will be protected against potential loss, making it a critical component of real estate transactions.

In the context of protecting against loss from defects, other types of insurance do not serve the same purpose. Home warranties typically cover the repair or replacement of home systems and appliances, liability insurance protects against legal claims from injuries or damages to others, while property insurance provides coverage for physical damage to the home itself but does not safeguard against title-related issues. Thus, title insurance stands out as the definitive protection against losses related to title defects.