Which type of claim could potentially void a title insurance policy?

The claim related to undisclosed liens is the correct answer because a title insurance policy is designed to protect property owners from losses due to defects in the title, including claims against the property that were not disclosed at the time of purchase. An undisclosed lien can be a serious issue, as it represents a legal claim against the property that may not have been revealed during the title search. If a property is found to have an undisclosed lien, the title insurer may be liable for losses incurred as a result of that lien, which can lead to the potential voiding of the policy if it is not covered under the terms of the insurance.

In contrast, claims for natural disaster damage typically do not void a title insurance policy since these policies cover issues related to the title itself rather than physical damage to the property. Similarly, claims regarding property taxes do not usually affect title insurance because taxes are liens that must be paid regardless of the title insurance status. Finally, claims from the local government can involve issues like zoning or condemnation, but again, these are not likely to void a title insurance policy unless they relate directly to a title defect that was not disclosed at the time of the policy issuance.