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How To Make The Most Of A Property Title Insurance Policy

How To Make The Most Of A Property Title Insurance Policy

Posted by Heartland on 14th Nov 2022

You've finally done it. It took months of scoping out prospective homes, making bids, and meeting with real estate agents. After all this, you've finally purchased a new house.

Unfortunately, finalizing the sale of a house requires some additional closing costs. Usually, these costs comprise 3%-6% of the home's purchase price. One critical part of these final costs is your property title insurance fees.

Property title insurance gives you financial protection if another party claims partial ownership of your house after you've finalized the sale. This insurance requires a title agency to check and ensure there are no open claims against your new house.

It may not sound like much, but this insurance plays a significant role in protecting your homeownership. The question is, how can you get the best title insurance policy that offers the most coverage? Discover the answers in this guide!


There are two types of title insurance: lender's and owner's policies. Generally, a lender's title insurance is a requirement for all home purchases. This insurance protects the lender if the seller cannot legally transfer the title of ownership rights.

In other words, this policy only protects the lender from financial loss. It does nothing for the borrower or the new homeowner.

That's where the owner's title insurance comes in. This insurance policy protects you from threats to your ownership claim over your property.

Homeowners benefit from this once they own their homes. Once you pay down your mortgage, you own an increasing share of the property. You have more to lose if somebody launches a rival claim that could take away your home.


Different companies may offer varying levels of insurance coverage with their policies. At Heartland, we offer standard policies and enhanced policies. As their names suggest, these policies offer different levels of coverage.

Standard Title Insurance

Standard title insurance covers the essential threats against your title. Some of these include:

  • Someone else owning an interest in your title
  • Improperly signed documents
  • Forgery, fraud, duress in the title chain
  • Defective records of documents
  • Restrictive covenants

A standard policy may also protect your title from entities with a lien on your title. These liens may come from:

  • Deeds of trust/mortgage
  • Violations of restrictions in Schedule B
  • Unmarketable titles

As you can see, a standard insurance policy protects you from several eventualities. However, standard policies cannot provide coverage for more unusual threats. That's where enhanced coverage comes in.

Enhanced Title Insurance

Enhanced title insurance policies provide coverage for each issue that standard policies guard against. However, several other challenges may arise against your title.

For example, this insurance can protect you from the forced removal of a structure. It offers protection against forced removals stemming from:

  • Schedule B violations
  • Zoning law violations
  • Unrecorded lines by an HOA
  • Unrecorded easements
  • Building permit violations

These are just a few potential dangers that an enhanced policy can combat. Likewise, these policies also offer benefits that most standard packages cannot.

For example, this policy pays rent for substitute land and facilities. It also offers coverage for boundary wall or fence encroachment.


The choice between different types of property insurance is entirely up to consumers. However, certain factors may sway homeowners to choose one policy over another.

First, standard insurance policies are more affordable. Generally, their level of protection will suffice for the majority of homeowners.

However, enhanced insurance policies offer increased protection from several additional threats. This coverage often makes for the perfect real estate title insurance policy. It can protect investors who own multiple properties.

This way, they can ensure that they have exclusive claims to their property ownership. But don't let that discourage you. Standard homeowners can always opt for this type of coverage if they choose.


Once you know the types of insurance policies, it's time to find a provider. First, understand that title insurance involves a two-phase process. The first phase includes searching a title's history to look for any issues with the deed.

Secondly, the insurance provider underwrites a policy that protects buyers from whatever issues they discover. Once they write the policy, insurance companies can charge fees for their services.

Most states allow insurance providers to set their own prices. As such, differing companies could charge vastly different rates. So, homebuyers must shop around to find rates that suit their budgets.

When you begin your search, start by determining an average price. What price range seems average across providers?

This step helps you find reliable deals as well as spot potential scams. Companies with rates that seem too good to be true usually are. However, finding prices on the lower end of the average range can be tremendously helpful to homeowners.

One way to compare insurance companies is to examine their fee breakdowns. Do some companies avoid charging when others do? If so, how much can you potentially save by choosing companies with fewer fees?


A title insurance property is a much more secure investment for homeowners. Receiving this coverage can protect you from claims against your property and the risk of losing your home.

So, start your search for the best property title insurance today! If you don't already have a provider, consider working with us.

Both of our owner's title insurance policy types can give you peace of mind as a homeowner. Likewise, we charge far fewer fees than many competing insurance companies. Working with us can save you hundreds of dollars!

If that excites you, take the next step. Contact us today to discuss which policy is best for your needs.