Which term describes items not covered by a title insurance policy?

Which term describes items not covered by a title insurance policy?

• A. Endorsements
• B. Exclusions
• C. Conditions
• D. Exceptions

Answer: (C)

In title insurance, coverage is defined by what the policy protects you from and what it does not. The term used for things the policy does not cover is exclusions. These are built into the policy language and specify risks or conditions the insurer will not insure, such as certain defects or restrictions that affect title. There’s also a related concept called the schedule of exceptions, which lists specific items that are not insured because they exist on the property at issuance (like a particular easement or lien). Endorsements, by contrast, add or expand coverage, and conditions govern the duties and limitations that apply to the policy’s coverage.

In title insurance, coverage is defined by what the policy protects you from and what it does not. The term used for things the policy does not cover is exclusions. These are built into the policy language and specify risks or conditions the insurer will not insure, such as certain defects or restrictions that affect title.

There’s also a related concept called the schedule of exceptions, which lists specific items that are not insured because they exist on the property at issuance (like a particular easement or lien). Endorsements, by contrast, add or expand coverage, and conditions govern the duties and limitations that apply to the policy’s coverage.