What does Schedule B of a title insurance policy outline?

Schedule B of a title insurance policy outlines the exceptions not covered by the title policy. This section details specific items, conditions, or encumbrances that the title insurance does not insure against. These exceptions can include things like prior liens, easements, or special assessments, which could affect the property but are not included in the coverage provided by the policy.

Understanding the significance of Schedule B is crucial for both consumers and professionals in the real estate industry. It helps clarify what risks remain with the property owner after a title insurance policy is issued. By specifying the exclusions, Schedule B allows buyers and their agents to evaluate potential issues that could arise with the title, ensuring they are informed about what is not protected by their insurance coverage.

In contrast, other sections of a title insurance policy serve different purposes: for instance, requirements that must be met for coverage are usually listed in a different section, while the premium amount for the policy is typically found elsewhere in the documentation. Legal disputes known to the insurer can also be recorded in separate sections of the policy or in endorsements, but they do not specifically represent the exceptions highlighted in Schedule B.