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About Title Insurance​


What is Title Insurance?

Title insurance protects you from losses that occur from various matters affecting the title to land. There are two basic types of policy: Owner's policies to protect the owner, and Loan policies to protect the bank's mortgage.

If the bank requires a Loan po​licy, why do I need to buy an Owner's policy?

The bank's policy only protects its interest. You, the homeowner, may be liable for title problems even though the bank is insured.

I paid for a title search - why do I need to buy title insurance also?

​​​A title policy insures against many defects which could not be discovered in a title search, as well as insuring against errors made in the title search itself.

Is Owner's coverage expensive?

No. A one time premium covers you throughout your ownership and after. When you are already paying for a loan policy, the additional cost for an Owner's policy is usually small.


What's Covered Under A Standard Owner's Policy?

​The standard Owner's policy provides the basic coverage for a homeowner:

  • It insures that you are the owner of the property.
  • It insures against losses from any liens or encumbrances on the property except those listed in the policy.
  • It insures against your title being rejected by a subsequent buyer because it is unmarketable due to a title defect or lien.
  • It insures you have a legal right of access to the property.
The title policy not only protects you against losses due to title claims covered by the policy, it also pays for the attorney's fees and costs in defending the title.

You are covered under the policy for as long as you own the property, and also for liability after you sell the property if you provide title covenants in your deed to the new buyer.

Your title policy has built-in inflation coverage, that is, the amount of the policy automatically increases up to 150% of the original amount to no extra charge.

Enhanced Coverage:
The Homeowner's Policy

In addition to the standard policy, there is also available a Homeowner's policy, which contains all the coverages of a standard policy, plus many additional coverages. The Homeowner's policy is available for just an additional 10% premium charge.

Providing the Best to Homeowners

Homeowners depend upon the strength and stability of a reputable title insurer to back their policies for years to come. Fidelity National Title has a long and proud history of providing homeowners with the most innovative title and escrow products in the industry.

 

With Fidelity National Title, homeowners can enjoy peace of mind knowing they are insured by one of the industry's premier title insurers. And with  the  Homeowner's Policy, they'll enjoy  even more  peace of mind knowing they  have the  best  title policy  available.

 

Superior All-Inclusive Benefits from the Homeowner's Policy

This superior policy gives your clients the most thorough and comprehensive coverage available in the industry. The new Homeowner's Policy includes the following basic coverage:

•     False impersonation of the true owner of the property

•     Forged deeds, releases or wills

•     Undisclosed or missing heirs

•     Instruments executed under invalid or expired power of attorney

•      Mistakes in recording legal documents

•     Misinterpretation of wills

•     Deeds by minors

•     Deeds by persons supposedly single, but in fact married

•     Liens for unpaid estate, inheritance, income or gift taxes

•     Fraud

 

The Homeowner's Policy also provides the Following Additional Benefits

•               Pre  and  Post  Policy  Protections: The Homeowner's Policy coverage  protects homeowners against claims  arising both  before  and after  the  policy  date. The homeowner is covered if someone else has an interest in or claims to have rights affecting the title, or the title is defective. Post-policy protection also includes coverage for forgery, impersonation, easements, use limitations and structural encroachments built by neighbors (except for boundary walls or fences) after the policy date.

•     Expanded Access Coverage: The Homeowner's Policy provides homeowners with expanded access protection for right of access to and from the property. Traditional title policies do not  define  the  type of access a homeowner has to  the  property, but  the Homeowner's Policy  specifically insures  both  actual pedestrian and vehicular access, based upon  a legal  right.

•      Restrictive Covenant Violations: The Homeowner's Policy protects homeowners against the loss of title to property because of a violation of a restrictive covenant that occurred before the insured acquired title.

•     Building Permit Violations: The Homeowner's Policy  covers homeowners if they  must  remove  or remedy  an existing structure (except for  boundary walls  and fences)  because  it was built without a building permit from  the proper  government office. This coverage is subject to deductible amounts and maximum limits of liability.

•      Subdivision Law Violations: The Homeowner's Policy protects homeowners if they can't sell the property or get a building permit because of a violation of an existing subdivision law. Homeowners are also protected if they are forced to correct or remove the violation. This coverage is subject to policy deductible and maximum limits of liability.


•                Zoning  Law  Violations: The Homeowner's Policy  protects homeowners if they  must  remove  or remedy existing zoning  laws  or regulations (subject to the  policy  deductible and maximum  limit of liability). Homeowners are also protected if they  can't  use the  land  for  a single-family residence due to  the  way the  land  is zoned.

•                Encroachment Protections: Covers homeowners if  forced  to  remove  an existing structure because  it encroaches on a neighbor's land  (coverage for  encroachments of boundary walls  or fences  is subject to policy  deductible and maximum limit of liability). Covers  homeowners when  someone  else has  a legal right to, and does, refuse  to  perform a contract to purchase  the homeowner's land, lease it or  make  a mortgage loan  on it because  a neighbor's existing structures encroach  onto  the  land.

•      Water and  Mineral Rights Damage: The Homeowner's Policy  provides coverage  if a homeowner's existing improvements, including lawns, shrubbery and trees, are damaged  because  someone  exercised a right to use the  surface  of the  land  for  the  extraction of minerals or water.

•                Supplemental Tax  Lien: The Homeowner's Policy  protects homeowners if a supplemental tax  lien  is filed  and assessed against  the property because  of new construction or a change  of  ownership prior  to the  policy  date.

•      Map  Inconsistencies: The Homeowner's Policy  provides coverage  if  the  map attached to the homeowner's policy  does not  show the correct location of the  land,  according to  public  records.

•      Continuous Coverage: The Homeowner's Policy covers homeowners forever, even if they no longer have the title. The policy  insures  anyone  who inherits the  title because  of the homeowner's death  and the  spouse  who receives the  title after  a dissolution of  marriage. The Homeowner's Policy  also  allows homeowners to transfer title to their  home into  a trust after  the  policy  date  and receive  uninterrupted coverage, at no extra  cost.

•      Value-Added Protection: Traditional title policies don't increase their coverage as the value of a home increases. Not so with the Homeowner's Policy. The policy amount automatically increases by ten percent per year for five years, up to 150% over the original policy amount. This automatic increase in coverage is included at no extra cost.

 

Title Policy Coverage Comparison

This coverage has certain limitations and exclusions that apply.  This policy has been adopted by both the CLTA

and ALTA.​

​​​Coverage Item

CLTA Standard Coverage

ALTA Residential (Plain Language)
New Homeowner's Policy

Post Policy Forgery ProtectionNo​
​No
​Yes
Enhanced Access Coverage
​No
​No
​Yes
Building Permit Violations
​No
​No
​Yes
Subdivision Map Act Coverage
​No
​No
​Yes
Restrictive Covenant Violations
​No
​No
​Yes
Mineral Extraction Coverage
​No
​No
​Yes
Map Inconsistencies Coverage
​No
​No
​Yes
Coverage Extended to Living Trusts
​No
​No
​Yes
Enhanced Encroachment Coverage
​No
​No
​Yes
Automatic Inflation Protection (5 years)
​No
​No
​​Yes


20 Important reasons why you should have owner's title insurance