Where is identified risk described?

Identified risk is described in Schedule B of a title insurance policy. Schedule B outlines the exceptions to coverage, meaning it lists specific risks or issues that are not covered by the title insurance. These could include liens, easements, or other encumbrances on the property that the insurer has identified based on the title search. Understanding what is included in Schedule B is essential for both the buyer and the lender, as it directly affects the level of protection provided by the title insurance policy and outlines potential risks associated with the property.

In contrast, other documents like the purchase agreement or homeowners insurance policy focus on different aspects of a real estate transaction and insurance, such as the terms of sale or coverage against property damage, rather than detailing title-related exceptions and risks.