Standard vs. Enhanced Title Insurance

Title insurance is an essential investment for homebuyers that offers peace of mind against financial loss stemming from property title defects. There are two types of title insurance: standard and enhanced. While both types of policies help to protect homeowners against potential title defects, they differ significantly in the extent of coverage they provide.

What Is Title Insurance?

The purpose of title insurance is to protect homebuyers from defects in their property titles. Title defects can occur for a variety of reasons, such as liens, unpaid taxes, errors in public records, or undisclosed heirs. Defects such as these can impose major financial burdens on homeowners — but title insurance ensures you’re covered against such risks.

Do You Need Title Insurance?

Title insurance is important for every homeowner, as it ensures you’re protected against financial loss in case of a property title defect. Without title insurance, you may be responsible for legal fees, unpaid taxes, or other expenses related to resolving the defect in your title. Title insurance policies typically cover the cost of legal defense and any financial loss that ultimately results from title defects.

However, not every title defect is automatically covered by your title insurance policy. It’s crucial to understand the differences between standard title insurance and enhanced title insurance so you can determine which type is appropriate for your needs.

Standard Title Insurance Coverage

Standard title insurance provides basic coverage for some of the most common title defects, including:

• Known liens, unpaid taxes, or errors in public records
• Fraud (for example, the seller was not the legal owner of the title)
• Lack of pedestrian access to the property
• Unknown heirs

Standard title insurance does not provide coverage for most defects or issues that arise after you have purchased the property.

Enhanced Title Insurance Coverage

Enhanced title insurance provides coverage against additional potential title defects, including:

• Undiscovered or undisclosed liens, unpaid taxes, and other judgements
• Zoning violations, building permit violations, and encroachments
• Lack of vehicular access to the property
• Homeowner’s association violations
• Post-closing forgery

Enhanced policies offer homeowners protection against a comprehensive array of risks that aren’t covered by standard title insurance.

Finding a Reliable Title Agency

For new homeowners, finding a reliable title insurance agency is paramount. At Heights Title Services, we’ve been committed to serving the Naples and Estero communities with integrity and honesty for nearly two decades. Owned and operated by attorneys, Heights Title is a fantastic choice for homebuyers who need a knowledgeable partner to act as a guiding light throughout the often confusing process of securing property title insurance.