What does a standard policy of title insurance NOT insure against?

A standard policy of title insurance does not insure against limitations imposed by government regulation. This is because title insurance primarily protects against losses arising from issues related to the ownership of the property itself, such as defects in title, liens, and other matters that might affect the ownership or use of the property. Government regulations, on the other hand, are legal restrictions or requirements that can change over time and affect how the property can be used or developed. These limitations may include zoning laws, building codes, or environmental regulations, which are beyond the scope of what title insurance covers.

When considering the other options, title fraud, foreclosure actions, and unknown heirs can be significant risks that a title insurance policy aims to protect against. Title fraud involves someone illegally transferring ownership without the real owner's consent, and a title insurance policy can provide coverage against such occurrences. Foreclosure actions relate to the process through which a lender can reclaim property when a borrower defaults on a mortgage, and title insurance can protect an owner from losses due to incorrect foreclosure processes. Similarly, unknown heirs can present a risk if a deceased person's heirs come forward claiming ownership, so a title policy typically covers that as well. Thus, the primary focus of title insurance is on issues relating directly to the title itself,