Will the title insurance include the property’s increases in value?

Unfortunately, no.

The insurance will only cover up to the purchase price or the policy amount. So, if your property increases in value over time and you have a claim, the insurance will only pay up to the property's purchase price.

If you want the title insurance coverage to reflect the changes in the value of your property, then you can buy additional coverage on the same policy. This will cost an incremental fee. The rate will not be as expensive as the rates of a new title insurance policy, since the title search has already been done.

You may also opt to buy a new policy if you think that there are events that may have clouded the title since the time you bought the first policy. In this case, the insurance company will charge the full rate.

• I am refinancing my mortgage. Do I need to purchase a new title insurance policy?
• Do I need extended title insurance coverage for bare land?
• Is there a way for me to save on my title insurance fees?
• At what instances should I get extended coverage on title insurance?
• What value does a real estate lawyer add on top of title insurance?