Which of the following is an exception to title insurance coverage?

Title insurance provides protection to policyholders from various claims against their property. However, it is essential to understand exceptions to this coverage to grasp the limits of protection.

Defects that clearly appear in the title search are typically declared in the title report. Since these defects are visible and known before the purchase, they are not covered by title insurance. The purpose of title insurance is to protect against unknown risks, and if a defect is clear and apparent during the title search process, the buyer knowingly accepts that risk when proceeding with the purchase.

In contrast, hidden defects that are undetectable, environmental issues, and structural issues uncovered after purchase represent risks that may not be known or visible at the time of the transaction. These are the types of risks that title insurance is designed to protect against, highlighting why the option regarding defects that are apparent in the title search is an exception.