Owner's and lender's policies insure against undisclosed liens, defective conveyances, forgery, and other title defects existing when the policy issued. Coverage is retrospective rather than prospective.
Schedule B exceptions define what is not covered.
Alternative Names:
Owner's Title Policy, Title Policy
Why it Matters?
Schedule B exceptions are where coverage disputes live, since matters disclosed and excepted are not insured and a survey exception excludes precisely the boundary and encroachment issues most likely to arise. Removing exceptions through endorsements at closing is substantially cheaper than litigating coverage later. The insurer's duty to defend title claims is a separate and frequently overlooked benefit of the policy.
Frequently Confused with
Related terms
Frequently asked questions
Where do coverage disputes arise?
Does the policy cover defense costs?
