A title insurance policy typically does not cover which of the following?

The correct choice indicates that a title insurance policy typically does not cover liens not known to the policyholder. Title insurance is designed to protect property owners from various claims and defects related to property titles, including issues that may arise from prior ownership or discrepancies in public records. However, for a lien to be covered, it usually must be discoverable through standard due diligence processes and searches conducted by the title company.

Liens not known or not recorded may fall outside the scope of coverage because title insurance focuses on protecting against defects that can be identified prior to closing. If a lien is unknown and has not been documented, the title insurance company may argue that it is not responsible for covering it, especially if the policyholder did not conduct adequate research or due diligence.

In contrast, the improper delivery of deeds, unrecorded easements, and errors in public records are potential risks that title insurance is designed to address. Title insurance provides coverage against claims arising from these issues, because they can significantly affect the ownership and use of the property. Understanding these distinctions is crucial for comprehending the scope and limitations of title insurance policies.