What is the main purpose of title insurance?

The main purpose of title insurance is to protect against losses that may arise from defects in the title to a property. This insurance serves as a safeguard for property buyers and lenders by covering issues that could impact ownership rights, such as undisclosed liens, fraudulent claims, errors in public records, or missing heirs. It ensures that the insured party is protected from financial loss due to these unforeseen title issues, enabling real estate transactions to be more secure and reliable.

The other options do not accurately reflect the primary function of title insurance. Providing loans for property purchases pertains to financing options, whereas assisting in closing costs relates to the expenses associated with completing a property transaction. Evaluating property taxes is a part of the fiscal responsibilities tied to real estate but does not relate to the protective nature of title insurance.