Protect Your Investment with a Homeowner's Title Policy
Title insurance offers financial protection against title problems that might not be found in the public records, are inadvertently missed in the title search process or that may arise from fraud or forgery. The title policy required by a lender covers only the lender’s interest in a property. That's why it's strongly suggested that every buyer purchase title insurance that covers their interest as well.
The homeowner’s policy, purchased at closing, provides coverage for the homeowner. If your home’s title is challenged, based on a situation covered in the policy, the title insurer will either perfect (establish a valid title) or pay for defending against the challenge and will either make perfect the title or cover the costs in the case of a valid claim.
Building Permit Violation Coverage
Covers up to $25,000 after a deductible equal to the lesser of 1% of the policy amount or $5,000. This coverage applies if the policyholder has to remove an existing structure (excluding boundary walls and fences) built by a previous owner who did not obtain the required permits.
Subdivision Coverage
Covers up to $10,000 after a deductible equal to the lesser of 1% of the policy amount or $2,500. This coverage applies if the policyholder cannot close a sale, secure a loan or obtain a building permit because the land was improperly subdivided prior to purchase.
Address Coverage
Address coverage insures that the home has the same address as the property insured in the policy.
Restrictive Covenant Violations Coverage
This type of coverage protects against loss of title if someone attempts to enforce an existing restrictive covenant due to a violation that occurred before the policy date.
Zoning Coverage
Zoning coverage protects if the policyholder is forced to remove or remedy an improvement because it violates zoning laws. Protection for forced remedy of violations is subject to a deductible and a maximum dollar amount.
Post-policy Coverage
Post-policy coverage protects against possible post-policy ownership claims.
Enhanced Access Coverage
Enhanced access coverage protects actual pedestrian and vehicular access to the property.
Encroachment Coverage
This protects against someone building a structure (excluding boundary walls and fences) that encroaches on the insured property.
Supplemental Taxes
This coverage protects against supplemental taxes for prior construction, change of use or ownership.
Coverage for Structure Damage From Extraction of Minerals, Water and Other Substances
This coverage protects all existing structures and landscaping on property, including future improvements; and protects against damage caused by others using the land for extraction and development of minerals, water and other substances.
Automatic Coverage Increases
Each of the first five years, the policy amount will automatically increase by 10% in value, up to a total of 150%.
Trust Coverage
Trust coverage extends the policy protection to include a trust that you create.
The homeowner’s policy, purchased at closing, provides coverage for the homeowner. If your home’s title is challenged, based on a situation covered in the policy, the title insurer will either perfect (establish a valid title) or pay for defending against the challenge and will either make perfect the title or cover the costs in the case of a valid claim.
Types of Owner's Policies
There are two types of Owner’s title insurance policies certified by the American Land Title Association® (ALTA®) – the Owner’s policy and the Homeowner’s policy. The Owner’s policy protects you from defects and liens in the history of your title through the date and time your deed is recorded in the public records. The Homeowner’s policy takes your protection to a higher level by providing coverage for many additional risks, including some that might occur after the deed has been recorded.Additional Coverage
The Homeowner’s policy protects against many common, frustrating problems, and the policy protects your investment for as long as you or your heirs own the property. Here are some of the additional coverages you’ll receive when you upgrade to a Homeowner’s policy:Building Permit Violation Coverage
Covers up to $25,000 after a deductible equal to the lesser of 1% of the policy amount or $5,000. This coverage applies if the policyholder has to remove an existing structure (excluding boundary walls and fences) built by a previous owner who did not obtain the required permits.
Subdivision Coverage
Covers up to $10,000 after a deductible equal to the lesser of 1% of the policy amount or $2,500. This coverage applies if the policyholder cannot close a sale, secure a loan or obtain a building permit because the land was improperly subdivided prior to purchase.
Address Coverage
Address coverage insures that the home has the same address as the property insured in the policy.
Restrictive Covenant Violations Coverage
This type of coverage protects against loss of title if someone attempts to enforce an existing restrictive covenant due to a violation that occurred before the policy date.
Zoning Coverage
Zoning coverage protects if the policyholder is forced to remove or remedy an improvement because it violates zoning laws. Protection for forced remedy of violations is subject to a deductible and a maximum dollar amount.
Post-policy Coverage
Post-policy coverage protects against possible post-policy ownership claims.
Enhanced Access Coverage
Enhanced access coverage protects actual pedestrian and vehicular access to the property.
Encroachment Coverage
This protects against someone building a structure (excluding boundary walls and fences) that encroaches on the insured property.
Supplemental Taxes
This coverage protects against supplemental taxes for prior construction, change of use or ownership.
Coverage for Structure Damage From Extraction of Minerals, Water and Other Substances
This coverage protects all existing structures and landscaping on property, including future improvements; and protects against damage caused by others using the land for extraction and development of minerals, water and other substances.
Automatic Coverage Increases
Each of the first five years, the policy amount will automatically increase by 10% in value, up to a total of 150%.Trust Coverage
Trust coverage extends the policy protection to include a trust that you create.
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