What kind of insurance addresses the risks associated with real property ownership?

Title insurance is specifically designed to address the risks associated with real property ownership by providing protection against potential issues related to the title of the property. This type of insurance ensures that the owner has a clear and marketable title to the property, free from defects or disputes that could arise from past ownership, claims, liens, or other encumbrances.

It typically involves a one-time premium paid at closing and covers legal fees and other costs associated with defending against claims on the title. Once a title insurance policy is issued, it remains in effect as long as the owner holds an interest in the property, offering long-term security regarding their ownership rights.

In contrast, liability insurance protects against legal claims resulting from injuries or damages occurring on the property, homeowners insurance covers physical damage to the home and personal property as well as liability, and property insurance generally protects physical assets but does not address title-related issues. Thus, title insurance uniquely focuses on the ownership rights related to real estate, making it the best answer.