What risks are covered?
"That depends on your policy. Coverage typically protects against 4 "hidden" risks."

1. Errors
-incorrect information in deeds, mortgages, public records, etc., such as wrong names.

2. Liens
-claims against the property or the seller which become the new owner's responsibility after the sale. Examples are unpaid mortgages, taxes, sewer and water assessments, bills owed to workers or other creditors, etc.

3. Claims To Ownership
-for instance, a claim to "marital interest" by the spouse of a former owner or by a child of a former owner who was not mentioned in his or her parents' wills.

4. Invalid Deeds
-for example, transfer by a previous seller who did not actually own the property, or by a previous owner who was not mentally competent.

Many of these problems might not be discovered in a routine title search.

Exceptions
These risks may not be covered by your title insurance policy.

Standard Exclusions:

Exceptions:

often appear as part of the printed form.


may also be written into your specific policy, based on defects found in the title search.

For Example:
--limitations on land use, such as laws against farm animals

For Example:
--easements, right of ways, and other legal obligations noted in the deed or in the public records

--mechanics' liens, such as unpaid construction loans or repair bills

--"restrictive covenants," agreements limiting certain types of use of your property

Your insurance company may remove some exceptions if you request it.