Which type of insurance would a person most likely purchase if he or she has recently bought a property and wants to be protected against any preexisting costs?A.Liability insuranceB.Life insuranceC.Disability insuranceD.Title insurance
Question
Which type of insurance would a person most likely purchase if he or she has recently bought a property and wants to be protected against any preexisting costs?A.Liability insuranceB.Life insuranceC.Disability insuranceD.Title insurance
Solution
The type of insurance a person would most likely purchase if they have recently bought a property and want to be protected against any preexisting costs is D. Title Insurance.
Here's why:
A. Liability insurance is typically used to cover legal costs if you are sued. It doesn't cover costs related to property ownership.
B. Life insurance provides a payout to beneficiaries upon the policyholder's death. It doesn't cover costs related to property ownership.
C. Disability insurance provides income protection if you become disabled and are unable to work. It doesn't cover costs related to property ownership.
D. Title insurance protects the policyholder from financial loss due to defects in the title to the property, such as preexisting liens or ownership disputes. This is the type of insurance that would cover preexisting costs related to property ownership.
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