What is the purpose of title insurance?

The purpose of title insurance is primarily to protect against losses that may arise due to defects in the title of the property or issues related to ownership. When a buyer purchases title insurance, they are ensuring that if any problems come to light—such as liens, encumbrances, or disputes over property lines—they will be covered for any financial loss associated with those issues.

This protection is especially crucial because title defects can be complex and may not always be discovered during a title search prior to purchase. Title insurance gives buyers peace of mind and financial security, backing them against potential claims that could affect their ownership rights.

The other options don't align with the primary function of title insurance. Covering costs of property improvements relates more to construction or renovation financing, while assisting sellers in marketing properties and ensuring quick sales pertain to real estate marketing and sales strategies, rather than the legal protection and assurance that title insurance provides.