Which of the following is only covered by an extended coverage title insurance policy?
A) Incompetent grantors
B) Unrecorded rights of parties in possession
C) Incorrect marital statements
D) Forged documents
Answer (2)
The correct answer is B) Unrecorded rights of parties in possession, as it is specifically covered by an extended coverage title insurance policy. This type of policy protects against risks associated with individuals occupying the property without being documented. Other options are typically covered by standard title insurance policies.
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The only option specifically covered by an extended coverage title insurance policy is unrecorded rights of parties in possession. Standard policies may not offer protection against these claims. Therefore, extended coverage is essential for comprehensive protection. ;
