Arizona Real Estate License Practice Exam 2026 – All-in-One Resource to Pass with Confidence!

The main function of title insurance is to insure against future claims to the title. Title insurance provides coverage for possible defects or issues related to the property's title that may arise after the policy is issued. This means that if a claim related to the title comes up, such as a disputed ownership or an undisclosed lien, the title insurance company will defend against that claim and potentially cover the financial losses associated with it.

Title insurance protects both buyers and lenders by ensuring that their interests in the property are secure from unexpected claims that could jeopardize ownership or marketability. Unlike other types of insurance which cover future events, title insurance specifically addresses past issues that could affect the future use or ownership of the property, making it a crucial element in real estate transactions.