What is not covered by title insurance?

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A policy of title insurance does not allow you to recover an amount greater than your actual monetary loss. Further, you may not recover more than the amount of total insurance purchased. This means that there can be no recovery for loss of value realized through appreciation, unless you have purchased additional insurance to increase your coverage. Recovery is limited to original cost or money expended, and you will not have insurance for the increased value of the land unless you obtain “increased value endorsements” to your owner policy to cover an increase in market value.

The policy of title insurance does not insure the owner against any loss or damage arising out of the refusal of any other person to purchase the land, lease the land or lend money against the land as security (called “market ability”). The policy also does not insure that you will be able to use the land for each and every use you might intend or that you will receive any particular level of profit due to your ownership of the property. It should be noted that in states other than Texas, title insurance can be purchased which will guarantee that the land is marketable, but this guarantee is not afforded in Texas.

The policy does not insure against the rights of a government with respect to condemnation or eminent domain, unless notice of such rights appear in the public records prior to the date of the insurance.

No insurance is afforded with respect to the consequences of any law, ordinance or governmental regulation, SPECIFICALLY BUILDING AND ZONING ORDINANCES.

No insurance is granted against matters created after the date of insurance or against matters known to you AND NOT DISCLOSED to the title insurance company or title insurance agent.

The cost of defending title, including court costs, attorney’s fees and the like, and/or the cost of securing and curing title, including court costs, attorney’s fees and the like, are all paid by the title insurance company and such payments are not deducted from the amount of coverage afforded by the policy.

These questions and answers are to serve as a guide only and are not intended to be legal guidance for your needs. The information provided here-in is for educational purposes only and we recommend you speak with a representative of Marathon Title Co. for more specific guidance and answers.



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