Which of the following risks does title insurance typically cover?

Title insurance primarily covers risks that affect the ownership and legal status of the title to the property, including issues that may not be revealed through a standard title search. One of the central purposes of title insurance is to protect property owners against potential losses arising from defects in title, which could stem from various factors.

These factors include fraud, such as when someone forges a signature on a deed, forgery of documents related to property transfer, prior ownership issues like undisclosed heirs who may have a claim to the property, and other title defects that could impact ownership rights. Title insurance provides coverage against these hidden risks that could lead to legal disputes or financial losses after the purchase of a property, thus ensuring that the insured party has a secure title.

In contrast, options involving natural disasters, legal disputes related to zoning laws, or maintenance issues primarily fall outside the scope of what title insurance is designed to cover. Title insurance does not protect against physical damage to the property or disputes that arise after a property transaction related to its use or condition.