Title Insurance Policies ….
What is title insurance? It is an indemnity insurance policy that protects the purchaser, lender or other party from financial loss due to any defects in the title of the specific property. What are defects? What type of policies are purchased? What is the coverage of each policy? Below will give you some information that I gleaned from a document I received from Roxanne Kelemen of Advantage Title of San Diego.
The most common title insurance policies are the “Standard ALTA/CLTA” and the “ALTA Homeowners”. A summary of the possible defects that are covered by each policy is below:
“Standard ALTA/CLTA: coverage protects against the following actions:
- Someone else owns an interest in your title
- A document is not properly signed
- Forgery, Fraud, Duress
- Defective recording of any document
- There are restrictive covenants
- There is a lien on your title because of a deed of trust, judgement, tax, special assessment of HOA charge
- Title is unmarketable
The extended coverage ALTA Homeowners policy also protects the homeowner or lender for the following:
- Mechanics lien protection
- Unrecorded lien by an HOA
- Unrecorded easements
- Building permit violations
- Boundary walls & fence encroachment
Oh, there are many more items that the ALTA Homeowners policy covers. If you need further clarification on the listed items or would like more details of the coverages, I can email the informational chart to you. For in-depth explanation, I’d recommend that you contact Rosanne at 619-892-5841 or [email protected] since she is the expert!
