Which of the following describes "title insurance"?

Title insurance is specifically designed to protect against losses related to the title of a property. This insurance provides coverage in case there are issues with the title after the purchase, such as claims by past owners, issues with liens, or other legal challenges that may arise regarding ownership rights.

It serves as a safeguard for buyers and lenders by ensuring that they have clear ownership of the property and can confidently proceed with their transaction, knowing that they are covered against certain risks that may not have been disclosed or discovered during the title search process. Title insurance is unique compared to other types of insurance in that it is a one-time premium paid upon closing, rather than ongoing payments like homeowner's insurance.

The other options focus on different types of insurance or convey misconceptions about the requirements for title insurance in real estate transactions. For instance, protection against property damage pertains more to home insurance rather than title insurance, and while title insurance is common in real estate transactions, it is not always mandatory in every situation. Additionally, there is no insurance that covers a real estate agent against commission loss in the same way that title insurance protects property interests.