Which issue is covered by title insurance?

Title insurance primarily protects property owners and lenders from financial loss due to defects in title to real property. This includes issues such as liens, encumbrances, and disputed ownership claims that may arise after the purchase of the property. When an ownership dispute occurs, title insurance provides legal defense and will cover financial losses incurred as a result of this dispute, ensuring that the owner's rightful claim to the property is protected.

Other issues, such as property maintenance costs, property market trends, and future construction plans on nearby land, do not fall within the scope of title insurance. Maintenance costs are the responsibility of the property owner, market trends affect property value but do not indicate ownership disputes, and future construction plans are mainly concerns related to zoning and land use rather than title defects. Therefore, the most relevant issue covered by title insurance is indeed disputed ownership claims.