Unless specifically removed (which is referred to as extended coverage), the commitment will contain a list of standard exceptions. These typically appear as Items 2(a) through 2(e) of Schedule B II.
2. Standard Exceptions
- Rights or claims of parties in possession not shown by the public records.
- Easements, or claims of easements, not shown by the public records.
- Encroachments, overlaps, boundary line disputes, or other matters which would be disclosed by an accurate survey and inspection of the subject property.
- Any lien, or right to a lien, for services, labor, or material hereto or hereafter furnished, imposed by law and not shown by the public records.
- Taxes or special assessments which are not shown as existing liens by the public records.
Giving Extended Coverage
The origin of the term "extended coverage" lies in the fact that all title insurance policies are supposed to contain the general, printed, or standard exceptions in their Schedule B, and any deletion increases or extends the coverage afforded by the policy. The exceptions over which extended coverage is granted can be either deleted from Schedule B of the policy or deleted through a proper endorsement. Also, in certain cases, affirmative assurance is given over them by endorsement. The standard exceptions should not be removed without considering the attendant additional exposure and consultation with underwriting counsel.