Which risk is typically NOT covered by a standard title insurance policy?

A standard title insurance policy is designed to protect against various risks related to the ownership of property, but it has specific limitations on coverage. One of the significant exclusions typically found in such policies is for intentional fraud related to title.

Intentional fraud involves a deliberate act to deceive, where someone knowingly participates in misrepresenting facts about the property title. Since title insurance is meant to cover unforeseen issues that arise in the title of the property, it does not extend to losses that stem from fraudulent activities that were intentionally perpetrated, as these situations can often be preventable or mitigated through due diligence. Insurers cannot cover circumstances arising from wrongful actions that are willfully undertaken by parties involved.

In contrast, issues like errors in the title search, hidden off-record title risks, and apparent off-record title risks are more routine risks that can occur without malicious intent and thus are typically covered by standard policies. These risks might include oversights in public records or undisclosed claims that weren't found during a standard title examination, which the insurer can assist with after the fact.