Omaha, Nebraska     Contributed by David Matney with Alliance Real Estate

When a buyer purchaser buys a home the last thing the buyer wants is a knock on the door by someone who claims to own the home.  To protect their interest the buyer buys a title insurance policy.  Title insurance is typically split between the buyer and seller.  There are two types of policies, ALTA 92 and ALTA 98.  ALTA stands for American Land Title Association. 

Both policies provide protection against public record errors, fraud and forgery, undisclosed heirs, and liens from a creditor of the previous owner.  However, the ALTA 98 policy is title insurance on steroids.  It does cost more but it provides significantly more coverage.  Some of this additional coverage includes zoning issues, encroachments, (an example of and encroachment is when your neighbor builds his shed on your property), and failing to obtain a building permit on your property. and you have to pay the cost of the removal of the property. 

Some situations may dictate the need for greater coverage and this should be discussed with your Realtor.  The small cost in premium seems worth it in the extra coverage they are providing.  If you have any questions you would want to contact your title company representative. 

Thanks,

David Matney, CRS,GRI

Alliance Real Estate