Who is covered by Title Insurance?

The Buyer

When acquiring property, it’s a good idea to get your own title insurance policy. It will give you peace of mind and maximum protection in case there is a claim against your home.

What Risks Are Covered?

That depends on the policy. Coverage typically protects against four “hidden risks.”

  1. Errors – incorrect information in deeds, mortgages, public records, etc. (such as wrong names)
  2. Liens – claims against the property or seller, which become the new owner’s responsibility after the sale. Examples are unpaid mortgages, taxes, water assessments, bills owned by workers or other creditors, etc.
  3. Claims to Ownership -for example, a claim to “martial interest” by the spouse of a former owner who was not mentioned in their 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 may not be discovered in a routine title search.


These risks may not be covered by your title insurance policy. Standard exclusions often appear as part of the printed form. For example:

  • Limitations on land use, such as laws against farm animals.
  • Mechanics’ liens, such as unpaid construction or repair bills.

Exceptions are also written into your specific policy, based on defects found in the title search. For example:

  • Easements, rights of way, and other legal obligations are noted in the deed or in the public records.
  • “Restrictive Covenants”, agreements limiting certain types of use of your property.


Your Insurance Company may remove some exceptions if you request it.