Types of Title Insurance Policies
ALTA/CLTA Standard Owner’s Policy:
Provides title insurance coverage to owners and/or lenders with insurable interests in real property. Basically insures against loss or damage by reason of matters appearing in the public records, as defined.
The Standard Owner’s Coverage Policy covers:
- Record matters
- Capacity and Authority
- Erroneous or inadequate legal descriptions
- Lack of a right access
- Deed not properly recorded
- Forgery, fraud, duress, incompetency, and impersonation
ALTA Owner’s Policy:
Provides title insurance coverage to owners with insurable interests in real property. This is usually requested as an “extended coverage” policy but may be issued as a “standard coverage” policy, as well.
The ALTA Owner’s Policy is known as an extended owner’s policy and covers:
- All STANDARD coverage matters
- Off record matters
- Encroachment of improvements onto another’s land
- Incorrect survey
- Silent liens (Mechanics’ Liens, Estate Tax Liens)
- Pre-existing violations of subdivisions map act
- Rights of parties in possession (tenants)
Because of those coverages a survey is required and an owners affidavit.
ALTA/CLTA Homeowner’s Policy (HOP) Title Insurance for a One-to-Four Family Residence:
Provides title insurance coverage to owners if improved one-to-four family residential property. Expands the number of covered title risks greatly, including certain specified risks that may arise in the future. Provides for payment of a “deductible” in some instances. This is our maximum coverage policy (ALTA/CLTA Homeowner’s Policy of Title Insurance) and Equity Title uses this policy as our default policy to issue unless the transaction does not require or allow it to be issued.
Joint Protection Policies:
Generally issued when a seller takes back a second deed of trust as part of the purchase price. Protects the buyer’s and lender’s interest under one policy. The Joint Protection Policy insures the interest of both the owner and the lender, avoiding paying two premiums.