What type of insurance covers defects that may arise after a property sale?

Owner's title insurance is specifically designed to protect property owners from defects or issues that may arise after their property has been purchased. This type of insurance provides coverage for various title defects, such as unknown liens, undisclosed heirs, or errors in the public records that may impact the ownership of the property.

Having owner’s title insurance ensures that if a problem with the title surfaces after the sale, the property owner will have financial protection against potential legal challenges or loss of ownership. It is issued for a one-time premium and remains in effect as long as the owner or their heirs hold an interest in the property.

In contrast, health insurance is focused on medical coverage, while homeowners insurance typically covers the physical structure of the home and personal property against risks like theft or fire, but does not address title issues. Lender's title insurance, while similar in that it covers title issues, specifically protects the lender's interests rather than the owner's, ensuring that the lender can recover their investment should a title issue arise.