What type of insurance protects buyers from past events that may affect their property ownership?

Title insurance is specifically designed to protect property buyers and mortgage lenders from issues related to the property's title that may arise from past events. This type of insurance safeguards against defects, liens, or other legal claims that could affect ownership rights. For instance, if there were an undisclosed lien or a previous owner with a questionable claim to the property, title insurance would provide coverage for any potential legal costs or financial losses resulting from these issues.

Homeowner's insurance, while essential, covers damage to the property and personal belongings, as well as liability for accidents that occur on the property, but it does not address title issues. Mortgage insurance, on the other hand, protects lenders in case a borrower defaults on their loan and is unrelated to past title issues. Liability insurance typically protects against personal injury claims made by third parties and does not pertain to the ownership of the property itself. Thus, title insurance is the relevant coverage for protecting buyers from past events that can impact their property ownership.