Escrow & Title

A Mississippi title insurance company is liable for which of the following types of losses?

APhysical damage to the property after closing
BDefects in title that existed before the policy date and are not listed as exceptions in the policy✓ Correct
CAny decline in market value after closing
DEnvironmental contamination discovered after closing

Explanation

Title insurance covers losses from title defects that existed before or as of the policy date that are not listed as exceptions in the policy. It does not cover physical damage (covered by hazard insurance), market value changes, or post-closing contamination. Environmental issues require environmental liability insurance.

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