My friend Kristal Kraft out in Colorado discussed title insurance on her blogsite a few days ago. She related a story about a former client who turned out not to be a former client. Mrs. X was not really Mrs. X but an imposter. The real Mrs. X surfaced and wanted her part of the proceeds from the sale of her former home. What happens? Title insurance may kick in and get her the money she deserves.
A few months ago someone asked me "What do I get with the enhanced homeowner's title insurance policy?" Truthfully, I did not know exactly what they got and I thought that I should have some idea. I realize, of course, that this is a question for an attorney. But since I thought I should know a little about the subject, I finally came up with a rather comprehensive list.
Wanted to share it with you.
Here are a few of the items covered in the ALTA Homeowner's Policy that are not covered in the Standard Owner's Policy:
a. Automatic increase in the amount covered of 10% per year for 5 years to a max of 150% of the initial policy amount.
b. Coverage if you are forced to remove or correct a violaion of covenants, conditions, or restrictions of violations by a previous owner.
c. Coverage if you are required to remove or remedy your existing structures, other than boundary walls and fences, due to a violation of a zoning law (coverage is limite to deductibles and maximum dollar amounts of liability).
d. Coverage if you are forced to remove a structure that encroaches onton an easement or over a building set-back line.