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Title Insurance: Why Choose Our Enhanced, Not Standard Insurance

Monday, April 11, 2022

Did you know that title fraud can take place when criminals use phishing, fake identification, or even forged deeds? You could be dealing with title fraud issues even decades after buying your home. 

Buying a home is a stressful process. Worrying about title fraud is not something on your list. Title insurance can help protect you from third-party claims on your property since these claims would not show up on your initial title search.

But standard insurance may not be sufficient for your needs. Keep on reading to find out more about why enhanced insurance would work best for you.

Benefits of Title Insurance

Title insurance protects you from many various claims over your property. Before you buy your new home, you will be conducting a title search. Unfortunately, a title search is not sufficient to protect your claim on your property.

Title insurance protects you from someone else claiming that they own your property. It also protects you from a lack of up-to-date survey, which doesn’t set out all the liens and easements correctly.

One of the biggest benefits of title insurance is to protect you from title fraud. Home title fraud can occur when a thief refinances a mortgage on your property and cashes out the equity. Criminals can also open a home equity line of credit in your name.

It’s easier for criminals to target vacation homes, vacation rentals, and investment properties. You can choose your policy between standard title insurance or enhanced title insurance. Your choice depends on your needs and how much protection you need.

What Is Covered Under Standard Insurance?

Title insurance protects you from third-party claims over your property. You can end up dealing with title claims even if you have owned your property for decades. Standard title insurance protects you when someone else owns an interest in your title.

Standard insurance can also protect you if the document is not properly signed. It will also protect you from forgery, fraud, or duress when dealing with the chain of title. So, you can be protected if you are dealing a title fraud.

In these situations, standard title insurance can cover the cost of paying off someone else’s claim or lien over your property. It will also cover the cost of legal fees to defend yourself against a lawsuit.

When Should You Consider Enhanced Title Insurance?

Enhanced title insurance offers all of the benefits of standard insurance and additional benefits. To determine whether enhanced title insurance works for you, you need to know what is covered under it.

Mechanics Lien

Enhanced title insurance can protect you from mechanics liens. A mechanics lien is placed on your property where a contractor, subcontractor, or supplier hasn’t been paid for their services.

The lien is placed to ensure that they are paid before anyone else. They have a higher priority of payment than other debts. Any new owner of the property would be responsible for dealing with any liens attached to the property, including mechanics liens. 

Forced Removal of a Structure

Enhanced insurance also covers the cost of forced removal of a structure. For example, if a neighbor builds a structure after the policy date that encroaches on your land. Forced removal of a structure includes removal because it extends onto another property or violation of a zoning law.

Post-Policy Benefits

Enhanced insurance can cover you for costs and damages following the end of your policy date. This includes:

  • Forgery
  • Encroachment
  • Damage from extractions of minerals or water
  • Adverse possession
  • Prescriptive easement

These are issues that you may run into during the policy term, but they will be covered under standard insurance. With enhanced insurance, you can get covered after the end of your policy date. This is especially useful if you believe that there may be third-party claims in the future, including aggressive neighbors or fraudulent activities.

Unrecorded Easements

Enhanced insurance will cover any unrecorded easements where there are easements based on use but are not recorded anywhere. For example, where your neighbor has been using the property in a certain way but is encroaching on your property. This will create an easement even though it hasn’t been recorded.

An unrecorded easement is generally not included in standard insurance, so you need enhanced coverage. You will want to make sure you have enhanced coverage to deal with such unrecorded easements.

Discriminating Covenants

With enhanced coverage, you will be protected from discriminating covenants. Discriminating covenants restrict the sale, ownership, occupation, or use of land because of sex, race, color, or nationality. These are especially relevant for older homes that might have racially restrictive covenants in their deeds. 

Cost of Enhanced Title Insurance

Remember that enhanced title insurance will be more expensive than standard insurance because you are getting additional benefits. The good thing is that payment of title insurance is a one-time fee that you pay when you purchase the property.

You can get the best rate for title insurance by shopping around and finding the right agent. They can find you the best rates that are competitive. When you work with us, you can get extra savings of $215 to $320 on fees. 

Request a Quote for Standard Insurance Today

With all these benefits of enhanced title insurance, you can decide whether this is the right option for you. Standard insurance protects you from third-party claims and title fraud by covering the cost of legal fees and settlements. But in some cases, standard insurance is not enough.

If you are looking to add enhanced title insurance, contact us to request a quote today. With us as your title agent, you can rest assured that our focus will be on you. We can help explain the benefits of enhanced title insurance and work with you to determine the best option for you.

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