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What is Title Insurance?Standard PoliciesEnhanced PoliciesWhich Is Right for You?
When you're buying a home, title insurance is a key protection that helps secure your ownership. But did you know that, just like other insurance policies, you can choose between different levels of coverage? Let’s break down the basics so you can make the right choice for your needs.

What Is Title Insurance?

Title insurance protects you from problems that might arise with the ownership of your property. It covers issues like unpaid property taxes, legal claims from unknown heirs, or mistakes in public records. This insurance ensures you have clear and undisputed ownership of your home.

Standard Title Insurance: Basic Protection

A standard title insurance policy offers basic coverage. It protects you from common problems like:

  • Fraud or forgery in past property documents
  • Mistakes in public records, such as errors in the legal description of the property
  • Unpaid property taxes or liens that were missed during the title search
  • Claims from previous owners or heirs who may come forward later

Your title agent does their best to check for these issues before you buy, but sometimes things slip through the cracks. A standard policy makes sure you're covered if something unexpected pops up.

Enhanced Title Insurance: Extra Peace of Mind

An enhanced owner’s policy goes a step further by adding extra layers of protection. It covers everything in the standard policy, plus more. Here are some of the additional risks it covers:

  • Inflation Protection: The coverage amount increases each year for the first five years to keep up with rising home values—without any extra cost
  • Building Permit Violations: If the previous owner made improvements to the home (like adding a pool or extra room) without getting the proper permits, this coverage protects you if you’re forced to fix or remove those additions.
  • Covenants, Conditions, and Restrictions: This protects you from financial obligations or title loss due to violations of homeowners’ association (HOA) rules that happened before you owned the property.
  • Encroachments: It covers situations where structures like a garage or fence are found to be built across property lines, as well as new encroachments from your neighbors after you purchase the property.
  • Access: You’re covered if there's ever a dispute over whether you have proper access to your property.
  • Zoning Issues: If a past owner made changes to the home that violated local zoning laws, this coverage helps protect you from having to make expensive fixes or tear down parts of your property.
  • Supplemental Taxes: If you’re hit with unexpected tax assessments for periods before you owned the home, an enhanced policy can cover these costs.

Which One Is Right for You?

The main difference between these two types of policies is the level of protection. Standard title insurance covers the basics, while enhanced title insurance offers broader protection, especially for risks that may come up after you’ve purchased the home.

The enhanced policy may cost a little more if purchased separately, but when you get your mortgage through CapCenter, you get this added protection included at no cost to you.  CapCenter covers the cost of an enhanced title insurance policy as part of our ZERO Closing Cost loans, so our clients will have peace of mind that their largest asset is adequately covered.
 

Buying a home is a big step, and title insurance helps safe guard your investment. We hope this has helped you get a better idea of which level of coverage is best for you.