Ace Your Affiliate Broker Tennessee (TN PSI) 2025 National Exam – Unlock Your Real Estate Future!

Title insurance protects against losses arising from defects in the property title. This type of insurance provides coverage for issues that may not be immediately apparent during the title search process, such as unknown liens, errors in public records, or claims by others to the ownership of the property. When a buyer purchases title insurance, they gain financial protection against potential legal disputes or claims that could challenge their ownership of the property, potentially leading to significant financial loss.

The other options relate to different aspects of real estate and property management. Liabilities incurred through property rental pertain to general liability insurance rather than title insurance. Damage from natural disasters is typically covered by homeowners insurance or other specific insurance policies. Market fluctuations in property values are influenced by economic conditions and are not something title insurance addresses, as it focuses solely on the legal ownership of the property and any associated defects in that title.