Title insurance primarily protects against:

Title insurance is specifically designed to safeguard property owners and lenders against potential losses from defects in the title to the property. This includes various risks, but one of the primary protections it offers is against unknown liens and encumbrances that may affect the ownership rights or marketability of the property.

When you purchase real estate, the title may have existing claims or issues that aren't immediately visible through public records or may not have been disclosed by previous owners. These might include unpaid taxes, mortgages, or other claims against the property. Title insurance helps ensure that if such hidden issues arise after the purchase, the insurance company will cover the costs associated with resolving these problems, effectively protecting the insured party's investment and ownership rights.

The other options address concerns that title insurance does not typically cover. For instance, future market value decreases are financial outcomes based on market trends and are not related to title defects. Physical damage to the property is generally covered under standard homeowners' insurance policies, not title insurance. Tenant disputes and evictions pertain to landlord-tenant relationships and legal issues that arise from those interactions, which fall outside the realm of title insurance protections.