By Jeff Lender
When you purchase an owner’s title insurance policy, it covers many of the common title defects that can cost you time and money. Is there a tax lien attached to your property? You’re covered. Was a document filed improperly in the past? You can receive compensation to cover the cost of correcting it.
These and many other title defects are covered by a standard title insurance policy, but some other situations may not be. If you’re wondering what may not be covered, read on to find out where your coverage ends, and how you can purchase affordable additional coverage for less common situations.
World Wide Land Transfer provides title and escrow services in various states across the country.
As we mentioned, a standard title policy covers many of the most common title defects. These include:
-Unpaid taxes by a previous owner
-Some types of liens against previous owners
-Conflicting claims of ownership (usually due to previously undiscovered wills)
-Fraud and forgery in the title chain
-Records errors and improperly filed documents
-Judgements against previous owners
If any of these title defects is discovered during the time you own your property, you will be responsible for resolving it. Your title insurance policy can provide full or partial coverage for any of the defects listed above. Utilizing your coverage is as simple as calling your title insurance company and filing a claim. While there may be additional steps in the process, your title agent will most likely be able to handle your claim without much involvement from you. There are, however, some other situations that a standard policy will not cover.
The purpose of title insurance is to cover you for things that happened in the past and could not be discovered during the title search process. If a defect originates during the time you own the property, it will not be covered. Standard title insurance will also not cover any of the following situations:
-Taxes and assessments made after you took ownership
-Condemnation of your property
-Covenants that limit your property’s use
-Defects that arise due to illegal activity
-Claims related to ownership rights on waterfront property
-Zoning or building violations
-Access issues
-Easements and property line disputes
-Mineral rights access issues
-Mechanic’s liens
While a standard title policy will not cover these defects, you may be able to purchase additional endorsements that will provide full or limited coverage for some of them. For example, if another party has the right to extract minerals that are located under your property, a mineral rights endorsement can cover you for the cost of removing or altering any structures that will interfere with those rights.
If a neighbor needs to use part of your property to gain access to their own, an endorsement may cover you for the cost of constructing a road for that purpose. These are only a few of the many title insurance policy endorsements that are available to property owners, so the best thing to do is speak to a title agent about your property so you can identify any potential title defects that are likely to affect you in the future.
Whether you already have a title insurance policy and want to add endorsements or you don’t currently have coverage, World Wide Land Transfer can help! We have worked with homeowners, buyers, sellers, lenders, and real estate agents for more than 20 years, giving us the experience it takes to find affordable coverage that meets your needs.
Visit our contact page and call one of our regional offices today if you have questions, or if you want to find title insurance in Allentown, PA or anywhere else in the country.
World Wide Land Transfer is a service-oriented PA title company with offices in Philadelphia, New York, and Washington, D.C. With a record of going above and beyond, we are trusted to close everything from complex commercial transactions to residential refinance and purchase transactions.
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