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The purpose of title insurance is fundamentally to protect the buyer and the lender from loss due to defects in the title of the property. Title defects can include issues such as liens, unpaid property taxes, or claims of ownership from unknown heirs, which might not be discovered during a standard title search.

When a buyer purchases title insurance, they are essentially securing a financial safety net that ensures they will not incur significant losses should any of these defects come to light after the purchase. The insurance covers legal costs and any potential financial losses related to such defects, thus providing reassurance to both the buyer and the lender during and after the transaction process.

Other options, while they may pertain to aspects of real estate, do not capture the essence of title insurance. It does not cover costs associated with repairs, ensure future saleability of the property, or guarantee the property's appraised value, but rather focuses specifically on safeguarding the ownership rights against past issues relating to the title itself.