Title Insurance is a subject that most new homeowners are not familiar with. There is a standard policy which is offered; and an enhanced policy, for just a few dollars more. Sure, when we are buying a home; we often feel nickel and dimed to death, and who feels like spending a few extra bucks on "title insurance?" What is it anyway, and what does it cover? Why do you need it?

The standard title policy covers you for matters affecting your title, up to and including the date of the recordation of your deed. Enhanced coverage in most policies has coverage for other risks, many with future coverage. The policy does have deductibles and maximums for some of the coverages.

Per Stewart Title Guaranty Company; listed below is a comparison of the comparison of coverages.

Both policies include and cover:

Mechanics Lien Coverages

Third Party Claims on an interest of the title

Improperly executed documents

Pre-policy forgery, fraud or duress

Non-Recorded restrictive covenants

Defective recording of documents

Prior recorded liens not disclosed in the policy

Unmarketable of the title

Here is a list of items which are in most cases only covered in the enhanced policy:

Policy insures anyone who inherits the property from you

Policy insures a trustee you transfer the property to after the policy date

Policy insures the beneficiaries of your trust upon death

Automatic increase in coverage

Post policy forgery

Post policy encroachment onto insured land

Legal right to actual vehicular and pedestrian access

Coverage for certain losses due to zoning law violations, existing violation of subdivision law, and building permit violations.

Post policy structural damages from 3rd party easement for mineral extraction

Violation of restrictive covenants identified in the policy; resulting in loss from correction or removal, resulting in loss of title; resulting in loss of use where single family dwelling prohibited

Forced removal of existing structures that; encroach on an easement, violate a building restriction, encroach on a neighbors land

Land cannot be used for a single family dwelling under the local zoning ordinance

As you can see; there are many, many reasons to spring the few extra bucks for the enhanced policy. If you have any questions in reference to title or buying or selling your home; call me today!

Gloria Price

Long & Foster Real Estate Company

443-676-0223 direct 410-515-5541 office