What is title insurance designed to protect against?

Title insurance is specifically designed to protect against losses arising from disputes over property ownership, which encompasses issues such as undisclosed liens, errors in public records, and challenges from previous owners. It provides coverage for the policyholder in the event that a claim is made against their ownership of the property, ensuring that they are financially safeguarded from potential legal actions related to ownership disputes.

In contrast, the other options address different aspects of real estate and property management that are not covered by title insurance. A decrease in property value relates to market fluctuations and external economic factors, which title insurance does not cover. Health and safety liabilities pertain to conditions affecting a property's habitability and are usually managed through liability insurance rather than title insurance. Risks associated with tenant eviction involve landlord-tenant law and are typically addressed through other forms of insurance or legal measures, rather than title insurance. Therefore, the primary purpose of title insurance remains to secure property ownership against potential ownership claims.