What type of policy does the American Land Title Association (ALTA) provide?

The American Land Title Association (ALTA) primarily provides title insurance policies, which are designed to protect property buyers and lenders from potential defects in the title of a property. Title insurance is essential in real estate transactions because it ensures that the title is clear of any claims, liens, or legal issues that could disrupt ownership. This type of insurance covers issues that might arise from errors in public records, fraud, or undisclosed heirs, giving peace of mind to those involved in real estate transactions.

By securing a title insurance policy, buyers can safeguard their investment against past claims that may not have been uncovered during the title search, which is a crucial part of the home-buying process. The absence of a title insurance policy could expose buyers and lenders to significant financial risks if a challenge to the title arises after the purchase. Other insurance options, such as homeowners, liability, and property tax insurance, serve different purposes and do not provide the specific protections offered by title insurance.