What is a common benefit of having title insurance?

Having title insurance provides significant protection against financial loss due to title defects, which refers to issues that could arise concerning ownership rights to a property. These defects can include undisclosed liens, fraud, errors in public records, or issues concerning heirs of a previous owner that might claim ownership. If such issues arise, title insurance will cover legal fees and any financial losses incurred, thereby safeguarding the property owner's investment and ensuring peace of mind.

Other options do not accurately reflect the primary function of title insurance. For example, lower property taxes, while a favorable outcome for property owners, is not a benefit provided by title insurance directly. Similarly, having priority in property leasing does not pertain to title insurance, as the insurance primarily concerns ownership rather than leasing rights. Enhanced property value assessment may result from several factors, including market conditions and property improvements, but this is not a function of title insurance. Thus, the most pertinent benefit of title insurance is the protection it provides against potential financial losses related to title defects.