In real estate transactions, a standard coverage policy is a type of title insurance policy that provides limited protection against defects in title. It is used in some states and offers less comprehensive coverage than an A.L.T.A. policy.
A standard coverage policy typically insures against matters that appear in the public record but may exclude certain risks, such as unrecorded liens or claims. Because of its narrower scope, it is generally less expensive than broader title insurance policies.
