Most of us wonder... What is Title Insurance? What does it cover? Why does my client have to have it? Here is some information on a few policy's for the State of Arizona and what they cover.... (This info is general and can vary between companies.)
STANDARD POLICY COVERAGE
· Someone else owns a recorded interest in your title
· A document is not properly signed, sealed, acknowledged or delivered
· Forgery, Fraud, duress, incompetency, incapacity or impersonation
· Defective recording of any document
· Unmarketability of title
· Lack of right of access to and from the land
ALTA RESIDENTIAL COVERAGE ABOVE ITEMS PLUS:
· Mechanic's lien protection for work or materials done prior to the policy date except where the insured has agreed to same
· Unrecorded liens by the HOA
· Others having rights arising out of leases, contracts, or options
· Someone else has an easement on the land
· Forced removal of the residential structure because it extends onto other land or on to any easement, or it violates a restriction shown in Schedule B, or an existing zoning law
· Plain understandable policy language
· Automatic inflation coverage increasing policy amount up to 150%
ALTA HOMEOWNERS COVERAGE ABOVE ITEMS PLUS:
· Living trust coverage
· Subdivision map act coverage
· Restrictive covenant violations by prior owners
· Enhanced access coverage
· Map inconsistency protection
· Post policy encroachment / post policy forgery
· Building permit/zoning violations by prior owners
If you have any questions about the title insurance in your area, contact your local Title Company for a list of coverages. Hope this helps to understand Title Insurance a little better! :)
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