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Do You Need Enhanced Title Insurance? Here's How to Find Out

Monday, August 23, 2021

By the end of this year, the growth rate of the title insurance industry in the United States is expected to increase by 10.2%.

As more homeowners are understanding the importance of insurance, they are deciding between basic and enhanced versions. Lender's title insurance is a requirement, but owner's title insurance is not.

But do you need enhanced title insurance? Read on to find out.

What Is Enhanced Title Insurance?

To understand if you need enhanced title insurance, you first have to know what it is. In short, it is a more advanced form of an owner's title policy that includes additional protections.

Basic owner's title insurance offers fundamental protections against common claims, but the enhanced version provides protections against those claims and others that could arise.

To cover it more in detail, these are the protections provided by standard title insurance:

  • Property ownership claims
  • Public record mistakes
  • Unknown heirs claiming ownership of the property
  • Fraud and forgery
  • Detective recording of documents

Enhanced title insurance covers the above claims but offers the following protections as well:

  • Liens against the property
  • Zoning issues
  • Lack of property access
  • Encroachment of structures onto your property
  • Subdivision violations

Post-policy, these are the wider variety of issues that you could run into. With only general title insurance, you won't be protected from the above five possibilities.

Enhanced Title Insurance Cost

Compared to the standard title policy, enhanced title policies cost a bit extra. This doesn't come as a shock to most because you are offered more protection.

However, this is one of the preferred title insurance options because you pay a one-time cost instead of monthly payments. To understand the complete picture of the difference in pricing, know how much homeowners insurance you need.

Do You Need Enhanced Title Insurance?

Out of these two title insurance types, determining whether you want enhanced title insurance is a personal decision.

The additional expenses are worth it for those who want to feel safer post-policy. If you trust that no claims will occur against your property, a standard policy works just fine.

Because you never know what claims might come up, the only way to protect yourself fully is by purchasing an enhanced title insurance policy. You'll have protection for as long as you own the property.

The home seller may purchase enhanced title insurance to ensure the title is clear before selling the house.

The Bottom Line

General title insurance policies work to protect you and your home during the closing process. Enhanced title insurance can do the same, but protect you from many other claims.

Whether you are dealing with an undisclosed heir demanding your property or zoning issues, enhanced title insurance will give you a fighting chance.

The ultimate decision on whether you need enhanced title insurance depends on how much you want to be protected. If you're comfortable with basic protections, you don't need to spend the additional costs.

To understand more about which policy you need, contact us today to speak with an expert.


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