Who is covered under a title insurance policy?

A title insurance policy is specifically designed to protect the insured parties against losses arising from defects in the title of the property that may have existed prior to the policy's issuance. This coverage is not limited to just the original owner of the property; it extends to the insured and their heirs as well.

When a person purchases a title insurance policy, it typically protects not only the individual who holds the title (the insured) but also their heirs in the event that they inherit the property. This means that if a claim related to a title defect arises after the original ownership transfer, the heirs would also be entitled to the protections outlined in the policy. The assurance that heirs are covered is particularly important for property owners who wish to ensure their family members are protected in the event of title issues.

While lenders may also have their own title insurance policies that cover their interests in the property, the specific focus of the question is on title insurance coverage for the property owner and their heirs, which aligns with the correct choice. Future purchasers, unless named in the policy or unless the policy is transferred to their name, would not automatically receive protection under the original owner's title insurance policy.