Title Insurance – Standard vs Enhanced
UNDERSTANDING THE DIFFERENCES BETWEEN BASIC TITLE INSURANCE COVERAGE AND THE ENHANCED TITLE INSURANCE COVERAGE AVAILABLE FROM SOME COMPANIES CAN HELP YOU DETERMINE WHICH OF THESE OPTIONS IS THE RIGHT FIT FOR YOUR NEEDS. HERE ARE SOME OF THE MOST IMPORTANT DIFFERENCES BETWEEN THESE TWO TYPES OF COVERAGE FOR YOUR TITLE INSURANCE NEEDS.
BASIC TITLE INSURANCE COVERAGE
As you might expect, basic title insurance covers just the basics and includes protection against the following potential claims against your property:
- Claims by other parties that they own the property
- Mistakes in the public record
- Previously unknown heirs claiming an interest in the property
- Fraud, forgery and other malfeasance
ENHANCED TITLE INSURANCE COVERAGE
Enhanced title insurance policies include all the coverages of basic title insurance and add protection against a few more risks for good measure:
- Liens against the property
- Zoning and building permit issues, including covenant restrictions and corrections
- Encroachment of structures onto your property or of your buildings onto a neighbor’s property
- Subdivision violations
- Lack of access to the property
- Supplemental tax assessments
The added protection available from enhanced title insurance coverage is usually well worth the small added cost at the time of closing or final sale.
