While home buyers may find that standard owners’ title insurance policies contain too many exclusions and exceptions, there is a newer alternative available: the Homeowner policy. This policy includes several additional coverages including forgery, and protections afforded by this new policy cover issues arising not only prior to, but after the closing, which is a change from the long-time traditional coverage. Other beneficial advantages built in are:
- Automatic increases in coverage, up to 150% of the original insurance amount
- Structural Encroachments
- Expanded Access Protection
- Restrictive Covenant Violations
- Building Permit Violations
- Subdivision Law Violations
- Zoning Law Violations
- Water and Mineral Rights Damage
- Supplemental Tax Lien Protection
- Map Inconsistencies
- Continuous Coverage, even if you no longer have title to the Real Estate
Additionally, the premium for this form of policy is generally no more than the standard owner’s coverage for residential owner title policies. Generally, many of these coverages would otherwise require additional endorsements to the title policy, each at an additional charge.
Here’s the small print: there is a deductible if you have a covered claim, which ranges from 1% of the policy amount up to $5000, and generally the property must be used for owner-occupied one-to-four family residential purposes. Certain other conditions also apply, and coverages and costs may vary.