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What does title insurance traditionally provide coverage for?

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4 votes

Final answer:

Title insurance traditionally provides coverage for protecting the homeowners and lenders from financial loss due to defects in the property's title.

Step-by-step explanation:

Title insurance traditionally provides coverage for protecting the homeowners and lenders from financial loss due to defects in the property's title. It ensures that the property has a clear and marketable title by conducting a thorough title search and covering any potential issues such as unknown liens, encumbrances, or errors in public records. For example, if a previous owner didn't pay property taxes or a contractor filed a lien on the property, title insurance can provide coverage and protect the owner's investment.

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User Kruiz
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