There are two different types of owners title insurance policies that you can purchase. There’s obviously a lenders policy, and an owners policy, but among the owners policies there’s actually two different choices. You can purchase a basic owners title policy, or an enhanced owners title policy.
The basic protects you against standard things like forgery, fraud, missing heirs, undisclosed recorded tax liens, or recorded prior undisclosed recorded prior mortgages, clerical errors in the public records. The enhanced coverage takes you to the next level, it provides affirmative coverage for building permit violations, up to twenty five thousand, a subdivision map coverage, it provides restrictive covenant violations coverage, zoning coverage. It provides encroachment coverage, so it protects against someone building a structure that encroaches on the insured property. It protects against some things that you would think were included in the standard policy.
For both of the policies, you know you’re only paying a one time premium, so it’s important to remember that this coverage will remain in effect as long as you, or your heirs, have an interest in the property. Just make sure you buy owners title, but then make sure it is important, I recommend my clients get the enhanced coverage. It provides a lot more coverage at almost the same cost when you include and consider the lenders policy, if you don’t purchase it, they charge you for endorsements, standard endorsements, so it ends up about the same as long as you’re purchasing owners. If you need more questions, please contact Steph Horn at Horn Title, I’m happy to provide more information about the differences between an owners policy that is enhanced, and a basic owners policy.