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What is Enhanced Coverage Insurance?

Monday, March 21, 2022

You may be asking yourself, "Do I need title insurance?" Is it worth it?


The answer is yes. Title insurance protects you from any losses due to problems with the title to your property. These problems can include forged signatures on documents, mistakes in the public record, and even fraud.


That's why it's essential to have Enhanced Coverage Insurance. This type of coverage goes above and beyond the standard title insurance policy and provides additional protection for your property.


In this article, we’ll discuss the ins and outs of enhanced coverage title insurance. Read on to learn more about Enhanced Coverage Insurance and how it can protect you and your property.

 

What Is Enhanced Coverage Insurance and What Does It Cover?

Enhanced title insurance is a type of insurance that covers any potential problems with your property title that could arise after you purchase the home. This type of policy can protect you from financial loss and legal expenses if there are any challenges to your ownership of the property. 


It can provide protection for lenders and homeowners in the event of a forged, altered, or missing document related to the ownership of a property. It is typically used in transactions where the purchaser is obtaining financing from a lending institution.


Enhanced Coverage Title Insurance for real estate properties covers a variety of risks, including but not limited to:

  • Risks arising from title defects, such as forged deeds or mortgage

  • Undisclosed liens or encumbrances on the property

  • Faulty surveyor’s reports

  • Rights of third parties, such as utilities or easements, that may affect the value or marketability of the property.


How Do I Know if I Need It and How Much Will It Cost Me?

There are a few things to keep in mind when considering whether or not to purchase enhanced coverage title insurance for your real estate: 

The value of your property: If you own a high-value home, it may be worth the extra cost to insure against potential risks.

The location of your property: Is your home located in an area with a high risk of natural disasters? It may be worth the extra cost to insure against potential damage.

Your personal risk tolerance: Enhanced coverage title insurance provides additional protection against potential risks, but ultimately the decision comes down to how much risk you are willing and able to take on. If you are comfortable with a higher level of risk, then you may not need the financial security of title insurance.

 

What Are the Benefits of Having Enhanced Coverage Insurance?

BUYERS

  • Protection against undisclosed or hidden title defects, including forgeries

  • Protection against loss of the property due to any reason, such as fire, windstorm, earthquake, or other casualty

  • Quick and easy claims settlement 

  • Please check with a tax professional for any applicable tax benefits

SELLERS

  • Protection against being sued by a buyer for a problem with the title that existed before the sale 

  • The ability to sell the property "as is" without any liability on the part of the seller 

  • Freedom from having to clear up any title problems before closing


How Can I Get More Information or a Quote for Enhanced Coverage Insurance?

Heartland Abstract has been providing title insurance services since 2000, and they offer a wide range of policies to from which to choose. 

Because Heartland Abstract is an independent company, we aren't limited to just one provider's products. This gives them the ability to find the best policy for your needs, at the best possible price.





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