What does an Owner's policy protect against?

An Owner's policy specifically protects against the risks defined in the policy itself. This type of title insurance safeguards property owners from financial loss due to defects in the title to the property or other issues that might affect ownership rights. Such risks can include, but are not limited to, claims against the title that may arise from prior owners, errors in public records, fraud, or undisclosed liens.

These defined risks are crucial since they give the policyholder assurance that they will be protected against specific issues that could result in loss or legal troubles. The scope of coverage is tailored based on the terms outlined in the policy, which is why understanding the specifics of what is covered is essential for property owners.

The other options, while they may involve real estate matters, do not accurately represent the primary function of an Owner's policy. Lease agreements, mortgages, and property taxes, while they can affect property ownership and use, are typically addressed under different types of insurance or agreements rather than being covered directly by an Owner's policy.