What is the main purpose of title insurance?

The main purpose of title insurance is to ensure that the buyer has clear ownership of the property. This type of insurance protects against potential claims or legal issues that could arise regarding the property's title, which might include liens, encumbrances, and disputes over ownership. Title insurance is essential because it provides a safeguard for the buyer against any unforeseen issues that could arise from past ownership or other matters that could affect the title, ensuring that the buyer can confidently make their purchase and have clear rights to the property.

In contrast, the other options address different aspects of home ownership that are not related to title assurance. Future mortgage payments pertain to the financial obligations of owning a home, home repairs focus on the physical aspects of property maintenance, and warranties for household systems relate to guarantees on appliances and systems within the home. None of these concepts relate directly to the protection of property ownership, which is the primary focus of title insurance.