Basic or Enhanced Title Insurance: How to Choose the Right Level of Coverage for You

May 3, 2021

You have auto insurance in case of an accident.
You have medical insurance for when you’re sick.
You probably even have insurance on your cellphone because what would you ever do without it?

But you’d be surprised how many people ask us, “Do I really need an owner’s title insurance policy?”

Yes. Yes, you do.

Here’s the thing. When you purchase a home, there endless legal and municipal issues that can be tied to your property. Things you may never have even considered.

Title insurance protects you, and getting the right level of protection is critical.

You’ll be required to purchase a lender’s title policy but that policy protects — you guessed it — the lender. Not you.

So you’ll want to purchase an owner’s title insurance policy. The good news is that this is a one-time fee and, once you’ve purchased it, you’re covered for life.

We know that a lot of homebuyers are cost-conscious, and that’s understandable. At the bare minimum, we recommend a basic title insurance policy. That’s going to cover any undiscovered issues that originate before you take ownership but that arise after you’ve got the title in hand.

These are things like an unpaid mortgage from a previous owner or finding out later that someone else’s heir actually owns an interest in your property.

If that happens, you’re covered.

But that only scratches the surface of what could eventually happen in the future. That’s where an enhanced title insurance policy becomes the best choice and the one we recommend in most cases, especially if you plan to own the property for a long time.

An enhanced policy covers everything a standard policy covers and it provides post-policy protection that covers a lot more. Encroachments, easements, forgery … you’re always covered.

In our industry, we see claims filed all the time. And many times, they are completely baseless. They still must be dealt with.

If you don’t have an owner’s title policy, you’ll have to go to court and deal with it on your own dime. The cost of that could be extremely high.

So get the policy and relax. You never know what the future might bring. You’ll just know you’re covered when it happens.

And that’s a great feeling.