What is an important feature of an owner's policy of title insurance?

An owner's policy of title insurance is primarily designed to protect the policyholder against defects in the title of the property they have purchased. This type of policy acts as a safeguard against any legal issues that may arise from claims against the title, such as undisclosed liens, ownership disputes, or errors in public records. Essentially, if a challenge to the ownership of the property is made that goes against the homeowner’s title, the insurance will defend the homeowner’s rights and cover any legal costs or losses incurred as a result.

The feature of protecting against defects in the title is crucial for homeowners as it provides peace of mind and financial security after the purchase. By ensuring the validity of the title, the policy helps to confirm the homeowner's legal right to the property, enabling them to fully enjoy and utilize their investment without fear of potential claims from third parties.

Other options, while pertinent to the home buying process, do not accurately reflect the primary benefit of an owner’s policy. For instance, mortgage approval is dependent on the lender's assessment of various financial factors and does not directly relate to title insurance. Similarly, title insurance does not guarantee property value or cover appraisal costs; its focus is strictly on title integrity and resolving any title-related disputes that could affect ownership.