Which matters are usually excluded from a title insurance policy?

The exclusion of fraud or misrepresentation from a title insurance policy is based on the nature of the risks that title insurance is designed to cover. Title insurance primarily protects against issues related to the title of the property itself, such as liens, encumbrances, or defects in ownership. However, matters that arise from fraudulent actions or misrepresentation typically fall outside the scope of normal title issues. Unless explicitly included, these matters are not covered because they involve intentional wrongdoing by individuals, which title insurance cannot effectively guard against.

Natural disasters, structural damage to the property, and tenant disputes are all related to the physical condition of the property or its use, rather than the legal title itself. Title insurance focuses on providing assurance regarding the ownership and rights associated with a property, thus leaving these other issues to be addressed through different types of coverage or insurance. Therefore, the exclusion of fraud or misrepresentation is correctly identified as a typical limitation in a title insurance policy.