Brought to you by Foundation Title and Escrow
At Foundation Title and Escrow, we know that buying a home is one of the most significant investments you’ll ever make. Protecting that investment starts with understanding the role of title insurance. While not required by law, owner’s title insurance offers valuable protection and peace of mind—helping you avoid costly legal issues should problems with your home’s title arise in the future.
Most lenders will require you to purchase a lender’s title policy to protect their interest, but when it comes to protecting your ownership, you have two main options to consider: Standard and Enhanced owner’s title insurance policies.
Let’s break them down so you can make the right choice for your situation.
Standard Owner’s Title Insurance
A Standard Owner’s Policy—also known as basic or limited coverage—is designed to protect you against common title issues that existed before you took ownership of the property. This includes:
- Defects, liens, or encumbrances on the title
- Challenges to your ownership due to errors in public records
- Issues with legal access to and from your property
- Problems arising from existing structures that encroach on easements or setback lines
This policy offers essential protection and is a smart baseline option for any homeowner.
Enhanced Owner’s Title Insurance (ALTA Homeowner’s Policy)
If you’re looking for broader coverage, the Enhanced Owner’s Policy, also referred to as the ALTA Homeowner’s Policy, offers more comprehensive protection—including coverage for certain risks that may occur after your closing.
This enhanced policy includes everything in the Standard policy, plus added protection such as:
- Protection from Title Fraud: Scammers can create fake deeds to steal your property or take out loans against it. The Homeowner’s policy helps by offering legal support and protecting you from fake ownership claims if someone tries to take your property after you buy it.
- Survey Coverage: It provides some coverage for certain survey issues without requiring an actual survey.
- Post-policy encroachments—like a neighbor building onto your property after you’ve bought the home
- Building Permit and Zoning Violation Coverage: For instance, if a building inspector requires the removal of an improvement like an enclosed patio due to lack of a permit, this policy provides coverage for the loss.
- Expanded Access Coverage: It ensures actual car and pedestrian access to and from the property, as opposed to a standard policy, which insures access in a broader way.
- Inflation Protection: The policy adjusts for inflation, increasing coverage up to a maximum of 150% of the original policy amount over five years.
This policy is especially valuable for homeowners looking for long-term, comprehensive protection for themselves and their heirs.
Qualifying the Property and Insured
To qualify for the ALTA Homeowner’s Policy, your property must meet certain requirements:
- It must be a single-family home, which can include up to four units or a condominium.
- The property should be in a platted subdivision or be no more than 25 acres in size.
- The owner/insured must be an individual or a living trust. The policy does not cover properties owned by corporations, partnerships, or LLCs.
- If the property is newly built, an acceptable “as built” survey may be required.
Some states might have additional requirements or changes to the policy, so it’s important to check with your local Foundation Title agent for more details.
Recommendation
At Foundation Title and Escrow, we believe every homeowner deserves the peace of mind that comes with strong title protection. While a Standard policy covers the basics, many of our clients opt for the Enhanced policy to gain additional safeguards for their long-term investment.
Protect Your Property the Right Way
Ready to protect your new home with confidence? Let our experienced team guide you through your title insurance options and help you choose the policy that best fits your needs.
Call Foundation Title and Escrow today!
We’re here to ensure your closing process is smooth, secure, and stress-free—because your foundation matters.
Download a free one-page comparison chart of the Standard vs. Enhanced Policy options.