Are you buying a home or other property? The last thing you need is someone challenging your ownership through an unknown prior claim to the title. There are other ways you can lose part or all your property as well.

Don't get caught in a bad situation. Give yourself some peace of mind with enhanced title insurance.

Wondering what title insurance and enhanced title insurance are? Keep reading for an explanation of an enhanced versus standard title insurance policy.

WHAT IS TITLE INSURANCE?

Imagine you saved for a down payment, found your dream home, and bought it. A month after closing, someone knocks on your door and tells you they have a legitimate claim to your property! What would you do?

The situation would likely result in an expensive legal battle and you still might end up losing the property. An owner's title insurance policy protects you from this type of scenario.

Don't confuse owner's title insurance with lender's title insurance. Lenders require a lender's title insurance policy but that only protects their interest in the loan. You need an owner's title insurance policy to protect your interests.

An owner's title insurance policy protects you against back taxes, outstanding liens, improperly signed documents, and more. When you buy a piece of property, the lender requires a title search. Every so often, the title search misses something, like an undisclosed heir or unpaid back taxes.

It's unfortunate, but the new owner is left to deal with the unfortunate circumstances. Title insurance is inexpensive when compared to the potential costs of not having it.

STANDARD TITLE INSURANCE

A standard title insurance policy is the minimum needed to protect you against someone else claiming an interest in your title. The standard policy also protects against an improperly signed document or defective recording of any documents concerning your property.

A standard policy also protects against restrictive covenants and liens on the title from a deed of trust or a violation of a restrictive covenant. A standard policy gives you some peace of mind but if you really want to rest easy when it comes to your property, consider an enhanced policy.

ENHANCED TITLE INSURANCE

Unfortunately, there are many other legal issues that can cloud the title to your property. An enhanced title insurance policy offers a lot more than the standard coverage and helps with unexpected problems.

Did you know if the building on your property encroaches on someone else's property or easement it's possible you'll have to take part or all of your building down? How does this happen? It could be an incorrect survey or failure to get a survey.

No matter the reason, an enhanced title insurance policy protects you if this happens.

In some cases, a person buys a property only to find out after closing that living in the house violates a zoning law or other restriction. This is another event covered in an enhanced policy.

Other issues impacting your title covered by an enhanced title insurance policy include:

• Post-policy forgery
• Post-policy damage due to mineral or water extractions
• Post-policy adverse possession
• Post-policy prescriptive easement
• Setback regulation violations
• Discriminatory covenants
• Unrecorded homeowner's association lien
• Building permit violations
• Boundary disputes
• Conflicting wills and deeds

These are some of the many issues covered by an enhanced title policy. Are there are any questions surrounding ownership of your property? You'll want an enhanced title policy.

TITLE INSURANCE COSTS

Unlike other types of insurance policies, title insurance is a one-time cost. You pay the premium at the time of closing and don't have to think about it again.

The costs vary depending on the type of insurance policy as well as the cost of the property. A standard title insurance premium ranges from about 0.5% to 2% of the total value of the home. If you pay $100,000 for a property, you'll pay anywhere from $500 to $2,000 for the policy.

An enhanced title policy is anywhere from 1% to 5% of the property's value. Costs also vary depending on the location of the property and who issues the policy.

Title insurance is a small price to pay considering the potential savings it offers. Litigation over a disputed title can cost many thousands of dollars.

SHOULD I GET ENHANCED TITLE INSURANCE?

How comfortable are you trusting your biggest asset to chance? If you're positive no one will ever make a claim on your property in any way, you may not think an enhanced policy is worth it.

Unfortunately, life is rarely so clear-cut. Forgery, fraud, and boundary disputes may seem like someone else's nightmare until it happens to you. Why not protect yourself before it happens?

An enhanced title policy costs a little more, but it pays for itself if you run into a problem, even well after closing the deal. A good enhanced policy also builds in policy inflation to further mitigate your losses in the event of a challenge to your title.

Having an enhanced title insurance policy also helps with the marketability of your home should you decide to sell.

OPT FOR ENHANCED TITLE INSURANCE

Buying a home is stressful and expensive and closing costs can feel overwhelming. Don't let the stress of closing costs keep you from making a good financial decision.

Enhanced title insurance protects your biggest and most important asset - your home. With the full coverage of an enhanced title policy, you'll sleep better at night!

Are you in the Pennsylvania area? Are you wondering about enhanced or standard title insurance? Let the experts at Heartland Abstract help you choose a title insurance policy that works best for you.

Contact Heartland Abstract today to protect your home and financial security!