What does title insurance primarily protect against?

Title insurance primarily protects against losses that may arise from defects in the title to the property. This coverage is crucial during real estate transactions because it ensures that the buyer receives a clear and marketable title, free from liens, encumbrances, or other issues that could affect ownership.

When a title insurance policy is issued, it typically covers risks that may be unknown or not discoverable through a standard title search, such as errors in public records, undisclosed heirs, or fraud. This specific protection helps assure buyers that they won't suffer financial loss if a title defect is discovered after the purchase is complete, thus providing peace of mind.

The other options focus on different aspects of real estate and property ownership but do not align with the primary function of title insurance. For instance, guaranteeing property value over time is more related to real estate market fluctuations rather than title issues, and protection from adverse possession claims relates to legal possession rights rather than title defects. A warranty of property condition pertains to the physical state of the property rather than the legality of the title itself. Therefore, the most relevant and accurate definition of what title insurance covers is its role in protecting against defects in the title.