title insurance general exceptions

[Phil Z.]

I am reading through schedule B of a title commitment. The general exceptions are listed below. People often talk about the importance of title insurance, and citing examples of an unpaid contractor placing a new lien, or an unrecorded IRS lien. My question is that based on my reading of the general exceptions below, the standard title insurance does not seem to provide coverage for these matters. Is my understanding correct?


General exceptions:

Rights or claims of parties in possession not shown by the public records.

Encroachments, overlaps, boundary line disputes, and any other matters which would be disclosed by an accurate survey

Easements, or claims of easements, not shown by the public records.

Any lien, or right to a lien, for services, labor, or material heretofore or hereafter furnished, imposed by law and not shown by the public records:

Taxes or special assessments which are not shown as existing liens by the records of any taxing authority that levies taxes or assessments on real property or by the public records. Proceedings by a public agency which may result in taxes or assessments, or notices to such proceedings, whether or not shown by the records of such agency or by the public