What types of claims might title insurance protect against?

Title insurance primarily safeguards against issues related to ownership and rights associated with real estate. One of the key protections it offers is against defective recordings and fraud. This includes situations where there is a flaw in the title documentation, such as inaccuracies or mistakes in the public records that could affect ownership rights. Additionally, title insurance can cover instances of fraud, such as someone pretending to be the legitimate owner of a property or forging documents to sell a property that they do not own.

In contrast, construction delays, local zoning changes, and property depreciation fall outside the scope of title insurance coverage. Construction delays are typically addressed through builder warranties or construction insurance, zoning changes are matters of local government regulations, and property depreciation relates to market factors rather than title defects. Thus, the focus of title insurance is distinctly on securing the buyer from historical claims and defects in the title of the property, making the identification of defective recordings and fraud crucial to its purpose.