What is one of the primary roles of title insurance?

One of the primary roles of title insurance is to protect against losses from defects in title. Title insurance serves as a safeguard for property buyers and lenders, ensuring that the legal ownership of the property is clear and free from issues that could affect the interest in the property. This includes protection against unknown liens, encumbrances, or other claims that could arise after the purchase. Essentially, if a problem with the title is discovered after the transaction has closed, the title insurance will cover the financial loss incurred due to that defect, providing peace of mind to property owners.

In contrast, the other options do not align with the main focus of title insurance. Guaranteeing market value pertains more to real estate appraisal rather than title issues. Providing coverage for all property disputes is overly broad, as title insurance specifically addresses title-related matters rather than general disputes. Lastly, appraising property for buyers is a function of real estate agents or appraisers, not title companies, which are primarily concerned with title security rather than property valuation.