Escrow & Title
A Virginia homeowner's title insurance policy pays a claim when:
AThe property value decreases due to market conditions
BA covered title defect is discovered that existed before the policy was issued✓ Correct
CThe property is damaged by a storm
DThe HOA increases assessments
Explanation
Title insurance pays claims for losses arising from covered title defects that existed as of the policy date — not future events, market changes, or physical damage. It is backward-looking insurance.
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