An owner’s policy of title insurance is essential to cover your investment from potential future claims. However, title insurance does not cover everything. In this article, we are going to talk about the things that your owner’s title insurance policy does not cover.
Things Not Covered in Your Title Policy
Before we get into details, we should note that each title insurance policy is different. As a result, it’s difficult to make generalizations that will apply to every policy. That being said, here are some of the items that are typically not covered in a general title insurance policy:
- Any defects created after the issuance of the policy, or defects that you create.
- Issues arising as the result of failing to pay your mortgage.
- Issues arising as the result of failing to obey the law or certain covenants.
- Specific taxes and assessments.
- Violating zoning or building ordinances related to land use, improvements, or environmental protection.
- Restrictive covenants that limit the use of the property.
- Condemned land.
- Claims from others who might have rights to your property if a body of water (river, stream, lake, etc.) is on or near the property.
It’s always important to communicate with your title company about these potential issues and to make sure you fully understand what is and is not covered under your policy.
Minnesota Title Insurance Experts
At Commercial Partners Title, we have decades of experience assisting people with their commercial title insurance needs. We are recognized across the country as experts in commercial transactions. Our team or title closers, underwriters, escrow agents, and more has the skills and experience to make sure your transaction goes off without a hitch. Contact us today to speak with one of our title insurance experts about your commercial real estate transaction. Our office is located in the US Bank building in downtown Minneapolis. Call to set up an appointment!