The difference between basic owner’s title insurance and enhanced title insurance lies in the level of protection they provide. Here’s an easy comparison:
Basic Owner’s Title Insurance
- Covers past issues: Protects you from problems with the property title that existed before you bought it, such as:
- Liens (unpaid debts tied to the property).
- Ownership disputes.
- Fraud or forgery in past ownership records.
- Errors in public records (like a misspelled name).
- Cost: Typically, less expensive than enhanced coverage.
- Time frame: Focuses on past issues only, not future risks.
Enhanced Title Insurance
- Covers past and future issues: Includes all the protections of basic insurance, plus coverage for potential future risks, such as:
- Zoning law violations.
- Building permit violations by a previous owner.
- Post-purchase forgery, fraud, or identity theft.
- Boundary disputes (like a neighbor claiming part of your land).
- Structural damage caused by someone else’s easement (a right to use part of your property).
- Issues arising after you acquire the property, like contractor liens that weren’t filed until after closing.
- Additional benefits: Often includes coverage for increased property value, automatically adjusting the policy limit as the property’s value rises.
- Cost: Slightly higher premium than basic coverage.
- Time frame: Offers broader, ongoing protection
Which Should You Choose?
- Basic: Sufficient if you’re mainly concerned about past issues and want a lower-cost option.
- Enhanced: Ideal if you want maximum protection, especially for long-term risks and future issues that could arise after you own the property.
To learn more or refer your next closing in Virginia, simply list “Strong Title, LLC” and email to hvansmith@strongtitlecompany.com