Which coverage normally insures the title as it is known from public records and against such hidden defects?

• A. Encroachments
• B. Subrogation
• C. Extended coverage
• D. Hidden defects in public records

Answer: (C)

The idea here is how title insurance protection differs between standard and extended coverage. A standard title policy protects the owner against defects in the title that appear in public records—things a title search is likely to uncover. But not everything that can affect title is recorded or obvious from those records. Hidden defects—issues that aren’t shown in the public records or aren’t easily revealed without a survey—pose a risk to title.

Extended coverage broadens protection to include these additional hazards. It covers many of the hidden problems that standard coverage might miss, such as certain unrecorded liens, encumbrances, or boundary/survey issues that could affect ownership. Because this question frames protection for the title as it’s known from public records and against such hidden defects, extended coverage is the best fit, since it adds protection against those hidden risks beyond what the public-records-based search would reveal.