Under ALTA 2006, which is NOT considered a covered risk?

In the context of ALTA 2006 title insurance policies, certain risks are explicitly covered while others are not. The option relating to governmental police power with no notice is not considered a covered risk primarily because title insurance does not provide coverage for risks or losses due to governmental actions, such as zoning changes or regulations that may affect property use. These actions are often beyond the control of a property owner and fall under the purview of governmental authority, which is not insurable by title insurance.

On the other hand, risks like documents that are not properly recorded, boundary line disputes, and easements not on public record are typically considered covered risks under title insurance policies. These issues can directly affect ownership and the enjoyment of a property, providing a clear basis for the role of title insurance in protecting against potential claims or losses arising from such inadequacies. Thus, the definition of covered and uncovered risks in the context of ALTA policies emphasizes the boundaries of what title insurance is designed to protect against, particularly regarding governmental actions.