Which of the following does title insurance NOT protect against?

Title insurance is designed to protect policyholders against certain risks associated with property ownership, such as title defects, liens, and other encumbrances that may not be discovered through standard due diligence before purchasing a property. The correct choice highlights an important distinction in the nature of coverage offered by title insurance.

When a title insurance policy is issued, it typically does not cover known issues or defects that were already identified at the time of the policy's issuance. This is because title insurance is meant to protect against unknown defects or problems that arise after the policy is issued. Known issues are typically the responsibility of the buyer to address before closing the transaction, as they have been disclosed and acknowledged.

In contrast, survey problems, previous owners failing to obtain building permits, and instances of fraud or forgery fall under potential risks that title insurance aims to cover. These issues may not be apparent or discovered during the standard title search and could impact ownership rights or the value of the property, which is why they are typically covered by a policy. Therefore, known defects at the time of issuance are excluded from the protections provided, defining the scope and limitations of title insurance.