Which statement about title insurance indemnification is correct?

Which statement about title insurance indemnification is correct?

• A. It indemnifies against liens only
• B. It indemnifies against certain environmental claims
• C. It indemnifies against any defect in, or lien, or encumbrance on such title
• D. It does not cover any defects

Answer: (C)

Title insurance indemnification protects the owner's ownership rights by covering problems that affect the title. The policy is designed to guard against defects in the title itself as well as any liens or encumbrances that could hinder or defeat those rights. Because of that broad protection, it covers defects in the title as well as liens and encumbrances, not just one narrow issue, which is why this statement matches the coverage. Environmental claims aren’t automatically included in standard coverage unless you add a specific endorsement, so they aren’t the default focus.

Title insurance indemnification protects the owner's ownership rights by covering problems that affect the title. The policy is designed to guard against defects in the title itself as well as any liens or encumbrances that could hinder or defeat those rights. Because of that broad protection, it covers defects in the title as well as liens and encumbrances, not just one narrow issue, which is why this statement matches the coverage. Environmental claims aren’t automatically included in standard coverage unless you add a specific endorsement, so they aren’t the default focus.