Florida Broker Practice Exam

What is the benefit to the heirs of the owner in a title insurance policy?

1. They receive the insurance payout

2. They inherit the policy's benefits

3. They're exempt from property taxes

4. They gain title to the property immediately

The correct answer is: They inherit the policy's benefits

The benefit to the heirs of the owner in a title insurance policy is that they inherit the policy's benefits. Title insurance protects against claims or liabilities that may arise due to defects in the title, such as undisclosed liens or ownership disputes. When the property owner passes away, their heirs can make a claim under the existing title insurance policy, ensuring that they have the same protections as the original policyholder. This inheritance of benefits helps the heirs to secure clear title to the property, minimizing potential financial loss from title defects that could arise after the owner's death. This particular aspect of title insurance provides peace of mind for both the current owner and their heirs, as it ensures that any issues that could affect ownership rights will be defensively covered. Other options do not align with how title insurance operates or the rights it grants to heirs.