• Why Do You Need Title Insurance?

    • Title insurance protects what for many people is the largest financial investment you will make in your lifetime.  Defects to title that may not have been discovered during a title search can put your ownership at risk.  Title insurance provides you with protection against these potential risks.

      Lender’s Title Insurance is usually required by your mortgage lender, paid for by the borrower, and protects the mortgage lender’s interest in the property.

      Owner’s Title Insurance protects the homebuyer.  An owner’s policy is purchased by the homebuyer and safeguards against possible title issues such as forgery, fraud, and prior claims of ownership, just to name a few.

      A title insurance policy will also cover legal defense costs should a claim or lawsuit challenging your ownership arise, and the claim settlement if it is proven valid.

      Champion Title works with the top recognized title insurance underwriters across the country to provide you with the best possible coverage for your home purchase.

    OWNER’S TITLE POLICY COMPARISON

    BASIC 1 ENHANCED 2

    BASIC PROTECTION

    ASSUMES COMPLIANCE WITH POLICY UNDERWRITER REQUIREMENTS FOR ISSUANCE OF APPLICABLE POLICY
    Claims of ownership by third party
    Fraud or forgery in chain of title that occur prior to closing
    Unpaid mortgage(s), liens or encumbrances on the title (utilities, HOA dues, state/federal taxes, mechanic’s lien).
    Errors in closing documents or recording
    Errors in eClosing or rejection of electronic signature
    Unmarketability of title (where legal issues prevent property from being sold or transferred easily)
    Legal access to and from the land
    Restrictive covenants limiting your use of the property or land
    Parties in possession of the property not disclosed by public records (e.g. tenants, adverse possession)
    Coverage extends from closing to the final recording of deed (aka Gap Coverage)
    Coverage continues as long as you or your heirs have an ownership interest in the property

    ENHANCED PROTECTION
    Actual vehicular and pedestrian access, based upon a legal right
    Unrecorded easements affecting property rights or access
    Encroachment of neighboring buildings onto your land
    Correction and removal of a preexisting HOA violation(s)
    Loss of title due to seller violation of a covenant, condition, or restriction
    Inability to obtain building permit due to violation of existing subdivision law or regulation, or violation must be corrected3
    Forced removal or remedy of existing structure because it was built without a proper building permit3
    Forced removal or remedy of existing structure due to violation of existing zoning law or regulation3
    Forced removal of existing structure(s) due to encroachment onto neighbor’s land3
    Forced removal of existing structure(s) due to encroachment onto an easement or over a setback line
    Land cannot be used as a single-family residence due to violation of an existing zoning law or zoning regulation
    Damage to existing structures due to use of easement affecting the land
    Damage to existing improvements due to extraction of minerals, water, or other substance from land surface
    Residence not located at the address stated in the policy
    Discriminatory land-use restriction

    POST-CLOSING COVERAGES
    Inflation protection – automatic increase in policy amount up to 150% of the policy amount over five years
    Fraud or forgery affecting ownership rights
    Adverse possession (unauthorized leases, contracts or options)
    Ownership claims
    Post-policy mechanic’s lien protection
    Boundary line and encroachment disputes
    Unrecorded tax or special assessments
    Easements or restrictions affecting your use of the land
    Supplemental taxes due to prior construction, change in ownership or land use
    Rent and relocation expenses, if you cannot use your home because of a claim covered by the policy

    • 1 The ALTA Owner’s Policy may be used on residential and commercial transactions.

      2 The Homeowner’s Policy may be used on purchase or refinance transactions, improved property in a platted residential subdivision, a completed residential condominium unit, or improvedresidential property with a metes/bounds legal description that does not exceed 25 acres of land. Not applicable for construction loans or property that is vacant land. The Proposed Insured must be a “natural person.” No corporations, LLCs, or other entities.

      3 Subject to deductible and maximum dollar limit of liability shown in Schedule A.This chart is intended for summary comparison only and is not a full explanation of coverage afforded by the ALTA Owner’s Title Insurance Policy. There are exceptions, exclusions, and conditions to coverage that limit or narrow the coverage afforded.

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