Escrow & Title
Title insurance protects the insured against:
AFuture physical damage to the property
BLosses from defects in title that existed before the policy date✓ Correct
CBoundary disputes arising after the policy is issued
DEnvironmental contamination discovered after closing
Explanation
Title insurance protects against losses from defects in title that existed prior to the policy issuance date—such as undisclosed liens, forgery, errors in public records, or unknown heirs. It does not cover future events or physical property damage.
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