Escrow & Title
Title insurance in New Jersey protects against:
AFuture physical damage to the property
BLosses arising from title defects, liens, or encumbrances that existed prior to the policy date✓ Correct
CThe buyer's default on the mortgage
DDamage caused by natural disasters
Explanation
Title insurance protects the insured against financial loss from defects in title—such as undisclosed liens, forgery, or errors in public records—that arose prior to the policy issuance date.
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