Comparison of Real Estate Title Insurance Basic VS Enhanced


Comparison between basic title insurance and enhanced title insurance policies:

Aspect Basic Title Insurance Policy Enhanced Title Insurance Policy
Coverage Protects against common title issues such as undisclosed liens, encumbrances, or errors in public records. Provides additional coverage beyond the basic policy, often including protection against additional risks or enhanced coverage for specific issues.
Scope of Coverage Coverage is typically standard and may vary slightly between insurers, but generally focuses on common title defects. Broader coverage with additional protections for specific risks or issues, tailored to the needs of the insured or property type.
Premium Lower premium cost compared to enhanced policies, making it a more budget-friendly option. Higher premium cost due to the expanded coverage and additional protections provided.
Coverage Limits Coverage limits are based on the property purchase price and may have certain exclusions or limitations. Higher coverage limits or fewer exclusions, providing more extensive financial protection against title defects.
Additional Coverages Limited additional coverages beyond the basic policy may be available but usually come with additional fees or endorsements. Includes a wider range of additional coverages as part of the standard policy, reducing the need for separate endorsements or add-ons.
Risks Covered Covers common title defects and issues such as liens, encumbrances, or errors in public records. May include coverage for risks like boundary disputes, pre-existing violations, or post-policy forgery.
Policy Endorsements Optional endorsements or riders may be available for specific needs but often come at an extra cost. Enhanced policies may include built-in endorsements or extended coverage without the need for additional fees or endorsements.
Recommended For Suitable for most standard residential or commercial real estate transactions where basic coverage is sufficient. Recommended for high-value properties, complex transactions, or situations where additional protection against specific risks is desired.

In summary, while basic title insurance provides essential coverage for common title defects, enhanced title insurance policies offer broader protection with additional coverages and higher coverage limits. The choice between the two depends on factors such as property value, transaction complexity, and the level of risk tolerance of the insured party.