Standard vs. Enhanced Owner's Policy
An owner’s policy is title insurance for property owners. It is purchased during the closing process for a one-time fee, and it protects your investment in the home for as long as you or your heirs have an interest in the property.
Every homeowner should purchase an owner’s policy to protect their investment and avoid future legal fees should problems with the title arise in the future. Although a title search is conducted when you purchase property, there are many instances in which problems cannot be detected no matter how much research is done. Some examples of these types of issues include forgery, undisclosed/missing heirs, or mistakes in recording legal documents.
There are two types of owner’s policy coverage:
Standard ALTA Owner’s Policy
The Standard Owner’s policy covers you from title defects and liens in the history of your title up to the date and time your deed is recorded in the public records.
Enhanced ALTA Owner’s Policy
The Enhanced Owner’s Policy provides expanded title coverage for owners of one-to-four family residential properties, including condominiums. This property needs to be Lot and Block (not meets and bounds.) and cannot be new construction.
Contact the professionals at All American Title Company today with any questions!