What is Title Insurance?
Title insurance protects the legal ownership of a purchased property. Before you purchase a property, it may have gone through several ownership changes. Title insurance coverage is designed to insure that the chain of ownership to the property is valid and free of defects.
Types of Coverage
Generally there are two types of Owner’s Title Insurance Policies available: Standard and Enhanced. Unlike other forms of insurance, traditional title insurance protects against events that have happened in the past. With an Enhanced Homeowner Policy you are also covered for certain future events and the amount of coverage will increase over the first five years of ownership!
Standard Owner’s Policy Vs. Enhanced Owner’s Policy
An “Enhanced Homeowner’s Policy, if selected, will increase the premiums by 10%.
|Coverage Item||Standard Policy||Enhanced Homeowner Policy|
|False impersonation of the true owner of the property|
|Forged deeds, releases or wills|
|Instruments executed under invalid or expired power of attorney|
|Mistakes in recording legal documents|
|Misinterpretation of wills|
|Deeds by minors|
|Deeds by persons supposedly single, but in fact married|
|Liens for unpaid estate, inheritance, income or gift taxes|
|Post Policy Forgery Protection|
|Enhanced Access Coverage|
|Building Permit Violations|
|Subdivision Map Act Coverage|
|Restrictive Covenant Violations|
|Mineral Extraction Coverage|
|Map Inconsistencies Coverage|
|Coverage Extended to Living Trusts|
|Enhanced Encroachment Coverage|
|Automatic Inflation Protection (up to 150%)|