Which policy typically insures against errors in the title search?

Title Insurance is specifically designed to protect against losses arising from defects in a property's title, such as errors in the title search process. When a buyer purchases real estate, a title search is conducted to verify that the title is clear of any encumbrances or claims that could affect ownership. However, if an error occurs during this process—such as an undiscovered lien, ownership dispute, or fraudulent claim—title insurance provides coverage for the financial losses that may arise from these issues.

Homeowner’s Insurance, while important for protecting the structure and personal belongings within a home, does not address title-related issues. Flood Insurance specifically covers losses from flooding and is unrelated to title defects, and Below Market Rate Insurance typically relates to government programs aimed at providing affordable housing, not title protection. Thus, title insurance remains the only policy that directly insures against errors in the title search process, making it the correct choice in this context.