8 What does Title Insurance Cover? Two basic types of title insurance policies are available to owners of real property in California: (1) a standard coverage policy and (2) an extended coverage policy. A standard policy insures primarily against defects in title which are discoverable through an examination of the public record. This includes defects in title or recorded liens or encumbrances, such as unpaid taxes or assessments, and defects due to lack of access to an open street. A standard policy also covers an additional, limited number of risks that are not discoverable through a search of the title plant or public records. The extended policy provides greater coverage than the standard policy. Generally, the extended policy provides the same coverage as the standard policy, but also insures against defects, liens, encumbrances, easem*nts, and encroachments and conflicts in boundary lines that are not reflected in the public records. Since an extended policy covers many “off-record” defects in title, the insurer will typically require a survey of the property to be insured. Since title insurance is required by your lender, the lender should specify the type of lenders policy required.
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