Owner's Title Insurance: Choosing Between Basic & Enhanced Policies

Owner's Title Insurance: Choosing Between Basic & Enhanced Policies

Purchasing a home is usually the single largest expenditure of a person’s lifetime.  So it is extremely important to protect that investment.  Owner’s title insurance does just that, serving as a crucial component of any real estate transaction.  Owner’s title insurance protects against potential issues that could threaten your ownership or use of a property, and comes in two forms: basic and enhanced. Understanding the differences between these two types can help you make an informed decision when purchasing the policy that is right for you.  As one of the top title companies in the DC Metro area (as announced by the Washington Business Journal!), Champion Title explains the benefits, and differences, of both options.

Basic Owner’s Title Insurance: Basic owner’s title insurance provides protection against title defects and liens up to the date and time the deed is recorded in the public records. This includes issues such as forged documents, undisclosed heirs claiming ownership, and errors in public records.  The coverage amount for basic owner’s title insurance is typically based on the purchase price of the property. It does not, however, protect against some additional risks that may occur after the deed is recorded.

Enhanced Owner’s Title Insurance: Enhanced owner’s title insurance offers a higher level of protection compared to the basic policy. In addition to covering the same risks as basic coverage, enhanced coverage will also protect against potential issues such as encroachments onto the property, post-policy forgery, and violations of restrictive covenants.  One of the key benefits of enhanced owner’s title insurance is that it often provides coverage for issues that are discovered after the policy has been issued, up to the policy amount, offering valuable peace of mind.

For a more detailed comparison of the coverage offered by both types of policies, please reference our Owner’s Title Policy Comparison Chart found here.

Costs:  Title insurance is paid one time at closing, and the cost is calculated based on a small percentage of the home’s purchase price.  An enhanced policy will usually cost a bit more than the basic, but the additional security it offers is immeasurable.

Still have questions about which owner’s title insurance policy is right for you?  Champion Title is here to help!  Just give us a call at (703) 444-4100 or visit our website at www.championtitle.com.