Title insurance is used to protect you and the mortgage lender from financial loss due to expenses associated with the home’s title. Unlike other insurance policies, title insurance protects you from past events and errors that were made before the home was yours.
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Title insurance coverage ranges from covering past events associated with improper documentation and unpaid debt to issues of ownership from conflicting wills. But what does title insurance not cover?
Title Insurance Does Not Cover:
Every title insurance policy is different, so coverage may vary depending on your policy. When it comes to title insurance there are typically items that are not covered including:
- Defects created after the policy was created.
- Defects or problems that you create.
- Issues that arise as a result of failing to pay your mortgage.
- Problems associated with failure to obey the law.
- Losses resulting from rights claimed by someone else occupying the land.
- Specific taxes and assessments.
- Violations of zoning or building ordinances related to land use, improvements, land division, or environmental protection.
- Condemned land unless a condemnation notice appeared in the public record on the date of the policy or if the condemnation occurred before the policy date.
- Ownership claims from others if a body of water such as a river or lake is on or near the property.
- Disclosed restrictive covenants that limit the use of the property.
When purchasing a title insurance policy, it is important to understand what is and isn’t covered. At Greater Nashville Title, we strive to provide every ounce of information that you may need to ensure that your real estate transaction goes off without a hitch. Our team of experienced closing coordinators and attorneys are here to provide assistance every step of the way.
If you have questions relating to your title insurance policy, contact a member of our team today!