Exclusions Explained by Tonya Mason, Esq. Click here for Tonya’s Bio
[email protected] Sometimes, it’s not what you have, insurance policy deals with matters this exception is found in Covered but what you don’t have, that arising from governmental Risk #5 in the title insurance policy counts. Much has been written and regulation and laws, including jacket. explained as to the importance of zoning issues. The title insurance Please note that obtaining a zoning obtaining title insurance coverage policy will not cover governmental endorsement such as the ALTA for real estate transactions; laws or regulations that restrict, 3-06 or 3.1-06 Endorsement does Investors Title even has a brochure regulate or relate to the following: not fully supersede this exclusion. entitled “Why You a. occupancy, use or The ALTA zoning endorsements Need Title “Understanding enjoyment of the Land only give affirmative coverage to an Insurance” that lists Insured as to the zoning the numerous what the title b. character, classification of the Land and the matters that a title dimensions or location insurance policy subsequent uses allowed by the insurance policy of improvements built zoning ordinance for the Land as of covers for an on the Land does not cover can the Date of Policy. insured lender and c. the subdivision of be crucial…” owner. It is also the Land important, however, Continued on page 2. to realize that a title insurance d. environmental protection policy contains exclusions from issues coverage; if an insured party In addition, the title insurance Inside this issue: submits a claim for an expressly policy does not cover the effect of excluded matter, then the title any violations of said governmental Exclusions Explained 1-3 insurance company is not liable laws or regulations.