Which of the following best describes "title insurance"?

Title insurance is best described as a protective measure against claims regarding the property’s title. This type of insurance is designed to safeguard property buyers and lenders from financial loss due to defects in a title to real property. Such defects could include issues like unpaid liens, encroachments, or errors in public records that could affect ownership rights. By purchasing title insurance, an insured party ensures that if a claim arises regarding the title, they will be protected against potential legal disputes and financial losses stemming from those claims.

The other options do not accurately depict the nature of title insurance. While performance guarantees pertain to lenders and are related to loan agreements, they do not relate to title claims. Insurance for property damage involves protecting against physical risks and is distinct from the legal protections that title insurance provides. Finally, securing loans for home purchases is a separate financial transaction that does not reflect the protective purpose of title insurance. Thus, option B is the most accurate description.