Question

A policy of insurance which indemnifies the holder for any loss sustained by reason defects in the title is known as what...? Fire Insurance Flood Insurance Liability Insurance Title Insurance

Answer 1

The answer is D. Title Insurance

Step-by-step explanation:

Title insurance is a form of indemnity insurance that protects the holder of the policy from a financial loss arising from title defects.

Home owners or real estate owners can purchase title insurance to prevent them from facing litigations from previous owners.

For example, the owner of a newly rented house can purchase this insurance if he is not sure of the action of the last occupant. Let's say the last occupant is owing an electricity bill which the supplier is entitled to. A new owner will not be liable to pay if it has purchased title insurance.