Title Insurance Coverage vs. Exclusions & Exceptions
Title insurance provides protection against certain off-record (hidden risk) factors.
For example:
Protection Against Hidden Risk Factors:
Protection Against Hidden Risk Factors: | Standard | Extended |
---|---|---|
Fraud, Forgery | ||
Undisclosed Heirs | ||
Mistaken Legal Representation | ||
Defective Deeds | ||
Confusion of Similiar, Identical Names | ||
Incomplete, Incorrect Delivery | ||
Unwanted Litigation | ||
Status (Marital, Corporate, Financial) | ||
Powers of Agents | ||
Errors in Public Records | ||
Defects in Legal Proceedings | ||
Competency (Minority, Incapacity) |
Subject to Exclusions and Exceptions, Title Insurance protects against loss by reason of:
Protection Against Loss By: | Standard | Extended |
---|---|---|
Title Vested Other Than Stated | ||
Previous Undisclosed Defect, Lien, Encumbrance | ||
Unmarketable Title | ||
Priority of Insured Financing Document (Mortgage, Trust Deed) | ||
Lack of Access | ||
Construction Liens |
The following Exclusions may affect your Title Insurance protection:
Exclusions From Coverage | Standard | Extended |
---|---|---|
Any Laws, Ordinances or Governmental Regulations Restricting Use | ||
Rights of Eminent Domain | ||
Unmarketable Title | ||
Defects, Liens or Encumbrances Created by Insured, or That the Insured Was Unaware Of | ||
Usury or Truth-In-Lending Laws | ||
Rights of Title to Property Beyond the Lands Expressly Described |
The following Exceptions may affect your Title Insurance protection. Our Extended Title Insurance coverage satisfies most of these concerns:
Will These Exceptions Affect Coverage? | Standard | Extended |
---|---|---|
Taxes, or Assessments Which Are Not Shown as Existing Liens, or a Notice of Future Proceedings Which May Result in Future Tax or Assessment Liens | ||
Facts, Rights, Interests or Claims not Shown by Public Records Which Could be Ascertained by an Inspection or by Making an Inquiry of Person in Possession | ||
Easements, Claims of Easement or Encumbrances, Not Shown in Public Records, Unpatented Mining Claims, Reservations or Exceptions in Patents, Water Rights, or Claims, or Title to Water | ||
Defects, Liens or Encumbrances Created by the Insured, or That the Insured Was Unaware Of | ||
A Lien, or a Right to Lien, Imposed by Law, and Not Shown in the Public Record | ||
Discrepancies, Conflicts in Boundary Lines, Shortage in Area, Encroachments, or Any Other Facts Which a Correct Survey Would Disclose |