I am purchasing a new home and don’t understand why I would want to pay extra for enhanced title insurance? Can you help explain?
Yes, the answer is simple. The “enhanced” policy (also referred to as “gold”, “eagle”, and “advantage”) offers essential additional coverage not found in a standard owner’s policy. The enhanced policy (ALTA Homeowner’s Policy) includes additional coverage for an improved residential property including some post -settlement/post-policy events.
To highlight a few:
-Someone claiming rights to your property arising from forgery or impersonation even post policy.
-Policy will insure you forever during your ownership and also insures anyone who inherits your property upon death and the trustee of a trust to whom you transfer title after policy issued.
-Includes built in inflation protection—the policy amount will increase by ten percent each year for the first five years up to 150% of the original policy amount.
-Protects owner from loss due to encroachments of their building structure (other than boundary walls and fences) over property lines and against loss due to encroachments of neighbors’ building structure (other than boundary walls or fences) built post-policy and without your consent.
These are just a few examples of enhanced coverage; for a more comprehensive list please see (link) to our website “What does title insurance cover? Basic vs. Enhanced Compare the Coverage”.
Please note, the usual and customary title search will be conducted; accordingly, an adverse matter discovered may be noted on title commitment and included in final title policy as an exception. I encourage purchasers to review and ask questions regarding their proposed title policy. The underwriting attorneys and marketing representatives at Lakeside Title Company are always willing to answer your questions.