What does a title insurance policy primarily provide to property owners?

A title insurance policy primarily provides protection against legal issues related to title defects. This means that if a property owner encounters problems such as undisclosed liens, fraud, or ownership disputes that may arise due to issues with the title, the title insurance will help cover the legal costs associated with resolving these problems.

Title insurance plays a critical role in real estate transactions by ensuring that the title is clear and marketable at the time of transfer. If any title defects are discovered after the purchase, the policy would typically cover the costs related to defending against claims or compensating the homeowner for any losses incurred.

The other options listed do not accurately represent the primary function of title insurance. For instance, property tax exemptions pertain to tax benefits rather than title protection. A home warranty for repairs is unrelated to title insurance and focuses instead on the physical condition of the home. Similarly, loan approval for property purchases involves financing processes and requirements, rather than the assurance provided by a title insurance policy regarding the legal ownership of the property.