Escrow & Title
Title insurance is unique among insurance products because it protects against:
AFuture events and risks after the policy date
BPast events and defects that existed before the policy was issued✓ Correct
CNatural disaster damage to the property
DThe buyer's inability to make mortgage payments
Explanation
Unlike most insurance (which covers future risks), title insurance protects against losses arising from defects, liens, or encumbrances that existed in the past — before the policy was issued — but were unknown at the time of closing.
Related Tennessee Escrow & Title Questions
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