What does a Title Insurance policy generally cover?

A Title Insurance policy is designed to protect property owners and lenders from potential losses arising from defects in the title of the property. This includes any claims against the ownership of the property. Such claims may involve disputes over property rights, undisclosed liens, or other legal challenges that could affect ownership. Therefore, the coverage of a Title Insurance policy specifically targets protecting against these ownership claims, ensuring that the insured party has clear and undisputed ownership of the property.

In contrast, the other options relate to different aspects of property ownership or issues that Title Insurance does not ordinarily cover. Property damages are typically handled through homeowners' insurance rather than Title Insurance. Legal fees might arise in the context of disputes over title, but Title Insurance itself does not primarily cover legal expenses unless specified in some policies. Not prorated costs doesn't align with the purpose of Title Insurance, which focuses strictly on title defects rather than the allocation or distribution of costs associated with property transactions. Thus, ownership claims are the primary concern of Title Insurance policies.