§14.9 - Interests Insured

• Jurisdiction: Washington

§14.9 INTERESTS INSURED

Many interests or estates in land can be the subject of title insurance. These interests generally must relate to current ownership of real property. A fee estate is most commonly insured, but lesser estates or interests are insurable. Examples include a leasehold, the vendee's "equitable interest" under a long-term real estate contract (not a purchase and sale agreement), a life estate, or an easement (appurtenant or in gross). Others, such as an option, might be indirectly insured. For example, the policy could name an optionee as the insured, but describe and vest the optionor's fee title in Schedule A, and show the option as an exception in Schedule B.

Some interests are not insured, such as a future interest, the beneficial interest in covenants, water or water rights, minerals, or a development right. Ownership of or a lien against a mobile home or a manufactured home might not be insured if the insurer is not persuaded that it constitutes land under the...