ENHANCED HOMEWONERS POLICY V. STANDARD POLICY
Better Coverage. The Homeowners Policy goes beyond the standard title insurance and offers coverage for matters not traditionally covered by Owners title insurance – 29 coverages as opposed to 10.
Minimal Increase in Cost. The difference in cost is only 10% above a standard ALTA Policy
Plain English. Finally, an insurance policy that you can read and actually understand!
The Homeowner’s Policy has “automatic inflation” coverage which increases the coverage of the policy up to an additional 50% if the property’s value increases. The policy will automatically increase by 10% of the liability shown on the policy on each of the first five anniversaries of the policy date
Although the attorney is doing a meticulous search of public records, there are matters out of their control which could affect the title. Just a few examples of these matters are:
- Post-policy encroachments;
- tax payments assessed for new construction for time period before purchase but assessed post-policy;
- identity theft;
- Insured’s own undischarged mortgages;
- Mechanic’s Lien coverage;
- Building permit violation;
- Subdivision violation;
- Restrictive covenant violation (even if excepted on Schedule B);
- Zoning violation
