What does an exclusion in an owner's policy imply?

An exclusion in an owner's policy implies that certain specific matters affecting ownership may not be covered by the insurance policy. This is an important aspect of understanding title insurance, as exclusions delineate the boundaries of coverage. They help define what is included and what is not, allowing both the insurer and the insured to have clarity regarding potential risks.

For instance, common exclusions in title insurance might include issues like easements not disclosed in the public record or certain public policy limitations. This means that any problems arising from these excluded matters would not be the responsibility of the title insurer to cover. Understanding this helps property owners make informed decisions about the risks they are assuming and what additional protections they may need to consider.