Which of the following statements does NOT describe an owner's title insurance policy?

An owner's title insurance policy is distinct in its workings and benefits, particularly regarding how it is issued and what coverage it provides. It functions primarily to protect against losses due to defects in the title that could arise after the purchase, safeguarding the owner's investment.

The statement regarding the market value of the property is not accurate in the context of title insurance policies. Instead of being issued for the fair market value, the policy is typically issued for the purchase price of the property. This ensures that the owner's investment amount is adequately covered against any legal claims or disputes that could affect ownership rights. Such claims can include findings of undisclosed liens or ownership disputes that may crop up after the purchase.

Understanding these nuances helps clarify that while title insurance does protect an owner’s financial interest in their property, it does not equate its coverage value directly with the current market value, which can fluctuate over time.