Conditions that would NOT be covered under an ALTA policy include

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ALTA title insurance protects against losses from title defects, but not every problem is covered. A lien created by the insured is not covered because the policy excludes defects or encumbrances that originate from the insured’s own acts. If a defect is known to the insured but not disclosed in writing to the underwriter, the policy will not insure against that defect, since undisclosed known issues are excluded to prevent misrepresentation. And if a defect exists but no loss or damage results, there is nothing to indemnify—the policy insures against loss or damage caused by covered title defects, not against mere potential problems. Taken together, these situations would not be covered under an ALTA policy, though endorsements or different policy forms can expand coverage in some cases.