Which of the following is not typically covered by title insurance?

Title insurance is designed to protect property owners and lenders from losses related to defects in title that were not discovered at the time of the property transaction. It essentially covers various aspects of title risks that can occur, especially those that may arise after the purchase of the property.

The correct answer highlights that foreclosure processes initiated by lenders are generally not covered by title insurance. This is because title insurance specifically addresses matters of title defects rather than the legal processes associated with enforcing a mortgage, such as foreclosure. Foreclosures are typically the result of the borrower's failure to meet loan terms, which is outside the scope of what title insurance protects against.

On the other hand, title insurance does cover legal issues arising from undiscovered title defects, unknown claims against the property, and discrepancies affecting property boundaries. These aspects are critical because they can lead to disputes over ownership, claims by other parties, or issues that could impact the property's value and the owner's investment. By covering these elements, title insurance provides vital financial protection to the insured parties.