Frequently Asked Questions
What problems are not covered by my Owner’s Policy?
Title insurance provides invaluable protection to homeowners but it does not cover every loss or problem with your title. There are exceptions to your coverage and it is important to read your policy and understand what it does not cover. If you have questions or concerns about your coverage, contact your real estate attorney for an explanation.
Title insurance does not guarantee a property has good, clear title, and a title search by an experienced title company is essential prior to closing. Your policy will not guarantee that you will be able to borrow money against the property or the ability to sell your property. Other defects and problems that a standard title policy generally will not cover:
- Title problems that occur after the date you purchased the policy
- Title risks that you create or allow by not paying your mortgage payments, taxes, association charges, special assessments and other related charge
- Violations of building and zoning laws that control how the land is used, land improvements, land division and environmental protections
- Restrictive covenants that regulate or limit how you can use the property or requirements for building on the property
- Condemned land is not covered, unless the notice of condemnation appeared in the public records on the policy date or unless the condemnation occurred before the policy date and is binding even if you did not know the land was condemned
- Unrecorded title defects that you had knowledge of or allowed to occur
- Property damage and loss due to fire, flood, theft or any other damage or loss that is non-title related
- Claims made in bankruptcy proceedings
- Title problems created by a deceased person’s estate or a trust
- Water and mineral rights
- Loss caused by encroachments, overlaps, boundary line disputes and other matters that would be disclosed by an accurate land survey or inspection of the property – you can purchase an amendment to this standard survey exception, often called survey coverage. Contact Celebrity Title for more information.
- Losses from rights claimed by “parties in possession” – such as renters or someone occupying the land. If you want to remove this exception from your policy, the title company can inspect your property and possibly delete this exception. The title company can charge a fee for the inspection.