Handling Owner’s Title Insurance Exceptions 

07/07/2026 11:29 AM       Mark Goodman

An owner’s title policy acts as a safeguard against title issues that may arise once you close on the property and become the owner. During the due diligence period and even after closing, you’ll likely work with a title insurance provider to secure a policy that offers all the protection you need. 

However, the insurance company is also looking to protect their interests, and they will likely include some exceptions in a policy they offer. You should read the policy carefully and determine if you have any issues with the potential coverage exceptions. If you take issue with an exception and feel that you need coverage in this area, you’ll want to take some specific steps. We discuss how you can navigate owner’s title insurance exceptions in today’s blog. 

Owner’s title insurance exceptions are more common than most people realize, and this can lead to issues if you believe you’re covered when you’re not. Some owners’ title insurance policies may contain exceptions for: 

• Gap periods 

• Taxes and assessments 

• Construction liens 

• Parties in possession (like tenants or unrecorded land contract buyers) 

• Easements 

• Encroachments/Boundary line disputes 

• Mineral and water rights 

In some of these instances, the reason these exceptions exist is because these items cannot be reviewed or evaluated solely by reviewing public records. If you review your offered policy and have concerns about any exceptions, you and your legal representatives have a couple of options. You can: 

Decline Coverage - You can simply opt to look for a different provider who will offer coverage for these exceptions. 

Push For Exception Removal - You may be able to negotiate with the title insurance company to drop the exception. This may involve additional costs as a way of protecting the insurance provider’s liability or to cover additional research into a property to absolve concerns over potentially removing the exception. 

Endorsements - You may be able to have an endorsement added to your title policy that provides additional coverage for any exception you are concerned about. 

Eliminate The Exception - The insurance provider may be able to provide you with information that explains what steps to take that would result in the insurance provider dropping the exception. You may be able to do this by obtaining a special assessment letter, a survey map, an owner’s affidavit or by paying an additional fee to secure extended coverage that in turn removes the exceptions. 

At Commercial Partners, we’re confident that we can work with you to cultivate a policy suited to your exact needs. We’ll develop a policy that offers you the protections you need while stripping away unnecessary costs and protections that aren’t relevant to your property. To secure a comprehensive and affordable owner’s title insurance policy for your commercial property, connect with the team at Commercial Partners today at (612) 337-2470.