What does title insurance primarily protect against?

Title insurance primarily protects against losses related to the property's title or ownership. This type of insurance is designed to safeguard the interests of the property owner and the lender against any claims or defects that may arise in the title of the property. Such issues could include undisclosed liens, encroachments, fraud, or errors in public records that could affect the rightful ownership of the property.

In contrast, the other options address different aspects of property ownership and real estate transactions. Losses related to the property's physical condition pertain to structural or maintenance issues, which are typically covered by home insurance rather than title insurance. Similarly, losses incurred during the closing process do not generally involve title issues but rather transaction-related costs and potential mishaps in the execution of the sale. Lastly, property market fluctuations reflect changes in real estate values, which are influenced by economic factors and not covered by title insurance. Thus, the primary role of title insurance is to ensure that ownership rights are secure and protected against prior claims or defects that could jeopardize the ownership status.