Escrow & Title
In New Jersey, 'title insurance' differs from other types of insurance because it:
ACovers future risks from events occurring after closing
BProtects against past events (pre-existing title defects) rather than future risks✓ Correct
CRequires annual premium payments
DIs provided by the government, not private companies
Explanation
Title insurance is unique in that it covers risks arising from events that occurred before the policy date (historical defects, undisclosed liens, forgeries, etc.).
Related New Jersey Escrow & Title Questions
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