Basic Title Coverage and Related Agreements  Vol. 1, No. 2
From Commercial Real Estate Practice Manual With Forms, Second
Edition, Chapter 10   Title Policy  In most states today title
insurance policies are standard in form. A title insurance
policy is considered a contract of indemnity and not a
guaranty.1 In determining liability under the policy, the entire
contract, including the exclusions, exceptions, and conditions,
is examined.2 As a general rule, ambiguities are construed in
favor of the insured and against the insurer.3 The first page of
a title policy contains the insuring provisions, subject to the
exceptions to coverage that appear in “Schedule B” of the policy
and the “Exclusions from Coverage,” both of which will be
discussed later.  The Owner’s Policy insures against any loss an
insured owner might sustain by reason of:   1. Title to the
estate or the interest of the insured being vested other than as
stated in the policy.4  2. Any defects in, or liens or
encumbrances upon, the title:5  (a