Which of the following defines "title insurance"?

The correct choice defines "title insurance" as coverage against financial loss from defects in the title. This type of insurance serves a crucial role in real estate transactions by protecting buyers and lenders from potential issues related to the property's title that may arise after the purchase.

Title defects can include various problems, such as undisclosed liens, forged signatures, or errors in public records. If the ownership of the property is challenged or if claims are made against the property due to these defects, title insurance provides financial protection. This ensures that the insured party does not incur significant financial losses due to these unexpected issues.

The other options focus on different types of insurance that do not pertain to real property titles. For example, property damage insurance relates to physical damage to the structure itself, while mortgage insurance is specifically designed for lenders to mitigate risks associated with borrower defaults. Insurance for personal belongings addresses the contents of a home rather than the rights of ownership to the property itself. Thus, the defining feature of title insurance is its specific focus on protecting property owners from financial losses due to title defects.