There are generally 2 types of title policies that are issued to insure ownership of your home. The information below will help you understand the coverage variations. The American Land Title Association (ALTA) Homeowner's Policy has the most coverage available, but not all policy types may be available in each state. Discuss your selection with your local title provider.
Standard title insurance
The standard insurance policy covers an owner against matters of public records and with certain problems with deed.
- Someone else owns an interest in your title
- Someone else has an easement on your land
- Improperly executed, delivered or recorded documents
- Forgery, fraud, duress, incompetence, incapacity or impersonation
- Defective recording of document
- A lien on your title because of a deed of trust, judgment, tax lien, special assessment or homeowners association charge
Enhanced title insurance policy
Everything in the standard title insurance policy and much more. There is some post policy coverage as well. Some of the items covered in an enhanced policy are:
- Forced correction or removal of any structures due to restrictive covenant violations
- Unrecorded easements
- Reversion or forfeiture of title due to restrictive covenant violations
- Damage to existing improvements, including landscaping, due to exercise of existing mineral rights.
- Post Policy inflation coverage up to 150% of the original policy
- Post Policy coverage extends to Living Trust beneficiaries and trustees
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