What is the HomeOwner's Title Insurance Policy?
Our underwriters have introduced the new Homeowners' Title Insurance Policy offering expanded title coverage for owners of one-to-four family residences, including condominiums. No policy issued by any company in the title industry has ever offered a broader, more comprehensive, more reassuring range of coverages for the homeowner.
As previously stated, Owners' title insurance has certain provisional coverages (along with some standard exceptions); however the Homeowners' Title Insurance Policy has the flexibility to have these exceptions deleted thereby providing extended coverage protection for zoning code violations, etc. The traditional Owners' Policy only looks backwards in time to see what has happened and then insures against loss. With the Homeowners' Title Insurance Policy protection, we also look ahead. This means we are giving coverage for things that may have happened but are not known, as well as things that have not yet occurred but, if and when they do, will leave the property owner wondering what to do and how he or she is going to pay for it if they don't have the Extended Policy Protection. Some of the Post-policy protections are as follows:
- Post-policy protection for covered risk which means that some defects in title that did not exist at the time the insured purchased the property, but are now asserted by others, are covered.
- Post-policy forgery which means the homeowner is covered when someone forges the insured's signature to a deed or mortgage in an effort to sell or impose a lien or restriction on their home.
- Post-policy encroachment coverage protects the homeowner if, after his or her purchase, someone else builds a structure (excluding boundary walls and fences) which encroaches on the homeowner's land.
- Post-policy easement by prescription covers the homeowner in the event another party claims to have the right to use a part of the insured's land as an easement because of continuous use over time.
- Post-policy building permit and zoning violations which would extend coverage to a homeowner who is forced to remove or correct existing structures that were build with a building permit or that violate an existing zoning law or zoning regulations.
In addition, the Homeowners' Title Insurance Policy contains graduated liability coverage, which many buyers have expressed a desire to have in the past. This means the amount of insurance (Policy Amount) will automatically increase ten percent each year for the first five years following the issuance of the policy. This adds up to 125% coverage for only 15% more in premium.
Also, even if the insured transfers the title to the property to a trust for estate planning purposes, where the insured is the trustor/settlor of the trust, the policy continues in force as of its original effective date. This is not expressly allowed under any other policy. Under the terms of all other policies, a transfer of the title usually terminates coverage. With all other policies the only way the insured can be sure he or she has not lost their coverage when transferring to their trust is to obtain a special endorsement. This costs extra money.
Please contact us at Sterling Land Title and we can tell you more about the remarkably innovative range of features and benefits creating the protection every homeowner needs with the Homeowners' Title Insurance Policy.