Comparison of Standard and Enhanced Coverage

Standard Owner's Title Insurance Policy insures against loss or damage resulting from:

  1. Title being vested other than as stated in the policy;
  2. Defects, liens and encumbrances affecting the title,
  3. Unmarketability of title, and
  4. Lack of a legal right of access to and from the land

Enhanced Owner's Title Insurance Policy insures against loss or damage resulting from:

  1. Lack of actual vehicular and pedestrian access to and from the land
  2. Forgery, impersonation or identify theft affecting the insured owner's title before OR AFTER the effective date of the policy
  3. Existing violations of restrictions, covenants or conditions (unless the policy takes specific exception to the violation, as opposed to just taking exception to the restrictions, covenants or conditions generally
  4. Existing violations of subdivision or zoning laws and regulations or failure to obtain building permits for construction of existing structures (subject to certain policy deductibles and maximums)
  5. Encroachments by existing structures onto adjoining property, easements or building setback areas (subject to policy deductibles and maximums for boundary walls and fences)
  6. Damage to existing improvements due to use or maintenance of easements (even those easements to which the policy takes exception)
  7. Damage due to the use of the land for extraction or development of minerals, water or any other substances (even under rights to which the policy takes exception)
  8. Supplemental real estate taxes due to construction or a change of ownership or use before the effective date of the policy
  9. Encroachments onto the land by structures neighbors build AFTER THE POLICY EFFECTIVE DATE other than boundary walls or fences
  10. The residence with the address shown in Schedule A being located elsewhere (i.e., the house isn't on the correct land)

An enhanced coverage policy also continues coverage in favor of the Trustee(s) of living trusts to whom title is transferred by insured owner(s).

The amount of coverage under an enhanced coverage policy increases automatically by 10% annually up to 150% of the face amount of the policy.

Enhanced coverage cannot be provided on commercial, retail or industrial property, vacant land or unimproved subdivision lots, residential condominium units and some acreage parcels.



POLICY COVERAGE

ENHANCED
HOME OWNER'S POLICY
STANDARD OWNER'S
POLICY
LENDERS POLICY
ONLY
Policy increases 10% per year up to 150%
Yes
No
No
Title vested as described in policy
Yes
Yes
No
Title defect not listed on policy
Yes
Yes
No
Unmarketability of title
Yes
Yes
No
Lack of access
Pedestrian & Vehicular
Legal access
No
Forgery after date of policy
Yes
No
No
Mechanics liens for work/material not ordered by owner
Yes
No
No
Forced removal or existing structure (walls & fences subject to deductible and $5000 maximum)
Yes
No
No
Unable to use land due to restrictions/zoning violations ($25,000 maximum)
Yes, subject to lesser of 1% or $5000 deductible
No
No
Claim to title due to existing restriction violation
Yes
No
No
Forced to comply with existing restriction due to prior violation
Actual loss after 1% of policy deductible
No
No
Unable to sell or mortgage due to prior restriction
Yes
No
No
Encroachment onto property after date of policy
Yes, except for wall and fences
No
No
Unable to sell, build, mortgage, lease due to subdivision law violation ($10,000 maximum)
Yes, subject to lesser of 1% or $2500 deductible
No
No
Structure damage due to mineral extraction
Yes
No
No
Forced removal due to prior building permit violation ($25,000 maximum)
Yes, subject to lesser of 1% or $5000 deductible
No
No