What Is an Exception in a Title Insurance Policy?
An exception in a title insurance policy is a specific matter, condition, or claim that the policy excludes from coverage. Exceptions are listed in Schedule B of the title commitment and define the boundaries of what the insurer will and will not protect against.
Standard Exceptions
Most Florida title policies include standard exceptions for:
- Parties in possession: Rights of tenants, occupants, or others in physical possession
- Survey matters: Encroachments, boundary disputes, and survey discrepancies
- Unrecorded easements: Easements not shown in public records
- Taxes not yet due: Current and future property tax obligations
- Mechanic's liens: Potential claims from recent construction or improvement work
Specific Exceptions
Based on the title search, additional exceptions are added for:
- Recorded easements and utility rights
- Deed restrictions and covenants
- HOA and condominium declarations
- Plat notes and subdivision requirements
- Any other recorded matters affecting the property
Removing Standard Exceptions
- Survey exception: Removed by providing a current ALTA survey
- Possession exception: Removed by seller's affidavit confirming no occupants
- Mechanic's lien exception: Removed by contractor affidavit or lien waiver
Related Terms
- Title Endorsement — Additional coverage to modify exceptions
- Encumbrance — Claims listed as exceptions
- Evidence of Title — The title documentation containing exceptions
Barnes Walker Title Services
Barnes Walker Title reviews and explains title policy exceptions for Florida buyers, identifying opportunities to remove or endorse over objectionable exceptions. Submit a title inquiry for assistance.
Florida Law Reference
Fla. Stat. § 627.7711
Regulates title insurance rates, forms, and practices in Florida. Title insurance premiums are promulgated by the Florida Office of Insurance Regulation.
Reviewed by the attorneys at Barnes Walker, Goethe, Shea & Robinson, PLLC