YOU ASK:
At what instances should I get extended coverage on title insurance?
WE ANSWER:
If you think you can get by with standard title insurance coverage, we recommend that you go with that so as to save on premiums.
However, if there is cause for concern, you can also look into getting extended coverage for your title insurance. The main advantage of an extended title insurance cover is that it will also pay for post-policy risks and claims.
Some instances where you should consider extended title insurance coverage would be:
- When you are buying a property, where lien claims may be complicated further by bankruptcy issues.
- There are legal complications related to the heirs of the policy.
- When you are concerned that there are some problems to the title that may occur after the policy's effective date. Remember, standard title insurance will only cover events or acts before the policy is made effective.
- There are concerns that the contractor or subcontractor was not paid for the job they did on the house and may file a mechanic's lien against the property. This also includes claims that are unrecorded (or not yet reflected in the public documents due to delays or errors) and are for materials, services and labor used in the house.
- Possibility of easements and encumbrances that are not recorder.
- Conflicts as to the boundary and resulting encroachments. (For example, you built a fence around your house and it was determined that you are encroaching on your neighbor's property because your legal documents recorded the wrong boundaries. The insurance will pay for the expense of removing the fence, as well as any loss it will bring you.)
- Unpatented mining claims.
- Possible coverage for zoning violations as well as other governmental rules - such as building permit. This would cover also for building permits that have gone past the due date and the removal of structures that do not follow the building permit regulations.
- Expanded access.
- Subdivision violations.
- Post-policy forgeries and acts of fraud.
Was this insurance question and its answer useful?
| Not a bit | Very useful |
Have an Insurance Question? Ask For Insurance
More questions about title and mortgage insurance:
- Is there a way for me to save on my title insurance fees?
- How to become a title insurance agent?
- Will home owner title insurance pay for liens made by the contractor of my house?
- Will title insurance protect me against false claims that arose after I purchased the property?
- Who pays for the title insurance in commercial transactions?
- Do I need extended title insurance coverage for bare land?
- Do I need an attorney for a warranty deed with title insurance?
- How much is title insurance?
- Who pays for title insurance on the short sale of a home in Florida?
- Who pays for owners title insurance?
- Is my real estate purchase protected with title insurance?
- What is owner’s title insurance and how is it different from lender’s title insurance?
- What is mortgage title insurance?
- What is a reissue rate on title insurance and how is this rate different from the typical rates for title insurance?
- What is a title insurance policy and what can it do for me?
- How to calculate title insurance?
- How much does the typical title insurance cost?
- Will land title insurance protect my property from damage due to mineral extractions?
- How to file a claim on title insurance?
- Who pays the cost of title insurance in Florida?