Title insurance coverage can be issued as a Loan Policy an Owner's policy. A Loan Policy DOES NOT provide title insurance coverage to YOU as the OWNER of the real estate you are purchasing and/or mortgaging.
If you wish to be protected by title insurance you must purchase your own title insurance policy. If you purchase an Owner's Policy at the time of the closing there will be a substantial savings to you on the premium. If you purchase your Owner's Policy at a later date the premium will be significantly greater.
There are two (2) types of Owner's Title Insurance policies available:
(1) the standard American Land Title Association ("ALTA") Owner's Policy 2006, and
(2) the ALTA Homeowner's Policy for a One-to-Four Family Residence 2010.
The Homeowner's Policy contains many insuring provisions that protect you, but the policy also contains conditions, exclusions and exceptions that may limit coverage, so read the policy carefully. If you have questions concerning the Homeowner's Policy, please feel free to discuss them with us.
A comparison of the coverages provided under each policy is shown below.
Home Owner's Policy V. Standard Owner's Policy
|Type of Coverage||Standard Owner's Policy||Home Owner's Policy|
|1||Someone else owns an interest in your title||✔|
|2||A document upon which your title is based is not properly signed, authorized, or recorded||✔|
|3||Your title is defective due to forgery, fraud, duress, incompetency or incapacity||✔|
|4||There is a lien on your title because there is:
a. a mortgage
b. a judgment, tax, or special assessment
c. a charge by a homeowner's association V V
|5||Your title is unmarketable||✔||✔|
|6||You do not have a legal right of access to the land||✔||✔|
|7||There is a mechanic's lien on your title after the date of policy, for labor and materials furnished before the policy date (The standard Mechanic's lien exception may be deleted from Schedule B of the Home Owner's policy, but not from the Standard Owner's Policy)||✔|
|8||Someone else has rights affecting your title because of an unrecorded lease (The standard parties in possession exception may be deleted from Schedule B of the Home Owner's policy, but not from the Standard Owner's Policy)||✔|
|9||You are forced to remove an existing structure because it:
a. violates a restrictive covenant
b. was built without a permit*
c. violates an existing zoning law*
d. extends on to other land or on to an easement
e. encroaches over a building setback line
*subject to a deductible of 1% of the policy or $5,000.00 (whichever is less) and a maximum liability of $25,000.00 .
| You cannot use the land as a Single Family Residence because the use violates an existing zoning law
An existing violation of a subdivision law results in**:
a. your inability to obtain a building permit
b. you being required to correct or remove the violation;
c. your title being unmarketable. **subject to a deductible of 1% of the policy or $2,500.00 (whichever is less) and a maximum liability of $10,000.00
|12||Someone else claims an interest in your title due to Post Policy Forgery||✔|
|13||Post Policy Encroachment of structures by your neighbor||✔|
|14||Your existing improvements are damaged due to post policy exercise of mineral or water extraction rights||✔|
|15||Your existing structures are damaged due to post policy exercise of an easement (even when excepted for in Schedule B)||✔|
|16||You are forced to remove existing Boundary Wall and Fence Encroachments***
***subject to a deductible of 1% of the policy or $2,500.00 (whichever is less) and a maximum liability of $5,000.00
|17||You are forced to correct an existing violation of a restrictive covenant||✔|
|18||You lose your title due to an existing violation of a covenant, condition or
|19||You do not have actual vehicular and pedestrian access to the land (Enhanced
|20||The residence with the address shown in Schedule A is not located on the land||✔|
|21||Your title is unmarketable because your neighbor's existing structures encroach onto the land||✔|
|22||Someone else tries to enforce a discriminatory covenant against your title||✔|
|23||Policy automatically increases in value up to 150 percent (10% per year for the first 5 years)||✔|
|24||Coverage continues even if you transfer title to a Trust for estate planning purposes||✔|
|25||Pays rent for a substitute residence in the event you cannot use the Land due to a claim covered by the policy||✔|
|27||Available ONLY for Residential, 1-4 Family Owner Occupied property (includes condominium units)||✔|