The concept that began as protection for attorneys for any errors in abstracts is called what?

• A. Subrogation
• B. Title insurance
• C. Standard coverage
• D. Encroachments

Answer: (B)

Title insurance protects a buyer or lender from financial loss caused by defects in a property's title. This concept began as a way to shield attorneys when abstracts and title searches might miss or misstate facts about ownership, liens, or encumbrances. Rather than leaving the risk with the purchaser or the lender, the title insurer guarantees the title and covers losses from covered defects discovered after the transaction. A one-time premium provides ongoing protection for as long as you own the property, with different policy types for lenders and homeowners. Subrogation is a related principle about insurers recovering costs from responsible parties, and encroachments describe boundary or structure intrusions that can affect title but are not the concept itself. Standard coverage refers to a level of title insurance protection, not the origin of the protection.