An owner's title policy primarily insures against which risk?

• A. Back property taxes or other title issues
• B. Structural defects
• C. Loss of rental income
• D. Personal property damage

Answer: (A)

An owner's title policy protects the buyer against problems that could cloud the property’s ownership by defects or liens in the title. The key risks covered are issues that predate or relate to the ownership transfer, such as unpaid back property taxes, outstanding liens, forged or misrecorded documents, or other encumbrances that could prevent clear title or raise a claim against ownership. This is why back property taxes or other title issues are the core focus of the policy. It does not cover physical problems with the property like structural defects, loss of rental income, or damage to personal property, which are addressed by other types of insurance or warranties.