What does a title company's title policy usually exclude?

A title company's title policy typically excludes specific situations that are beyond the usual scope of a title insurance policy. This includes acts of war, governmental actions, and environmental hazards. These exclusions are standard because title insurance is designed to protect against issues that may arise from defects in the title itself, rather than broader issues that can affect ownership or use of the property.

Acts of war and governmental actions can lead to changes in property rights or ownership that a title insurance policy cannot predict or mitigate. Similarly, environmental hazards, such as the presence of hazardous materials or contamination, create liabilities that are not covered under a title insurance policy, as they do not directly relate to the title's legality or validity.

Understanding these exclusions helps clients recognize the limitations of their title insurance and highlights the importance of performing thorough due diligence in these areas before purchasing a property. The other options pertain to different aspects of real estate that might be covered under various warranties or policies, but they do not accurately reflect the typical exclusions found in a title insurance policy.