When buying a home, a title company will protect you from a risk you’ve likely not thought about — a claim or lawsuit from a previous owner. Your deed won’t protect you from that risk, but title insurance will. A title company provides a variety of title services to satisfy buyers’ and lenders’ concerns about clear title. It performs a title search, prepares documentation for closing, and offers title insurance to back up their title research findings, should anyone make a claim to the property in the future.

Title insurance underwriters offer an “enhanced” policy, which offers additional coverage from the “standard” coverage to the homeowner.

For example, a “standard” policy covers the homeowner for matters affecting title up to and including the date of the recordation of the Deed, while its “enhanced” policy provides coverage for 28 additional risks, many of them pertaining to future coverage and automatic increases of coverage to cover increases in the value of property.

Although, the enhanced policy premium is slightly higher than the standard policy premium, the reality is a minimal cost to the homeowner for the ability to substantially reduce their risk and exposure on one of the largest investments they will make in a lifetime.

To illustrate the differences between a standard Policy and enhanced Policy, below is a representative coverage comparison of standard and enhanced insurance products. This will help you in deciding which policy is the best for you to protect your ownership in your home.

View our Title Policy Comparison

Title insurance rates that are to be charged in all transactions are filed by the Title insurance underwriters in most states and Title insurance rates are regulated by state insurance commissioners based on such rates filed. The amount of title insurance a consumer pays for lenders and owners coverage is based on the sales price and/or the loan amount for the various coverages.

When you refinance your mortgage, you are required to purchase lender’s title insurance to protect your lender for the new loan. Depending on the state you live in, you may be eligible for a lender’s policy premium discount or reissue rate.

If you previously purchased owner's title insurance when you bought your home, this will last for as long as you or your heirs own the home, and you do not need to purchase owner’s title insurance again.