What are "standard exceptions" in a title insurance policy?

"Standard exceptions" in a title insurance policy refer to items that are typically not covered by the policy unless they are expressly mentioned. These exceptions are designed to outline certain risks or issues that the title insurer does not guarantee are free of defects at the time the policy is issued.

By identifying what constitutes "standard exceptions," it helps both the insured and the insurer clarify the limitations of coverage provided under the policy. Common examples of standard exceptions often include easements, rights of parties in possession, and restrictions that may affect the title or usage of property.

Understanding this aspect of title insurance is crucial for anyone dealing with real estate transactions, as it sets expectations on what protection the policy provides and what risks remain unprotected. This clarity is important in making informed decisions related to real estate purchases or developments.