Title Insurance - Enhanced coverage - What does
this mean for your client? Is it necessary? For an additional 20% of
the regular premium, you can obtain for your clients an Enhanced
Coverage Residential Policy which provides additional coverage beyond
that which the standard policy covers. In addition to the standard
policy coverage, there are 10 additional items in the enhanced policy:
1. Liability automatically increases by 5% of
the face amount of the policy per year for the first 5 years to a
maximum of 125% of the face amount of the policy.
2. Access coverage includes both pedestrian and
3. Coverage is provided for loss by reason of
any future forgery of any instrument by which someone else claims to
own the land or have a lien thereon.
4. After a 1% deductible, your client is insured
up to $25,000 by reason of a forced removal of the residence as it
existed when it was purchased because it or any portion of it was
built without a building permit.
5. Coverage for loss by reason of any future
encroachment when a neighboring property owner attempts to build on a
portion of your client’s land without their consent.
6. Coverage for loss by reason of a reversion or
claim of reversion arising out of a prior violation of a property
7. After a 1% deductible, your client is insured
against loss by reason of their being unable to obtain a building
permit for an addition or remodeling, or a buyer refused to purchase,
or a lender refuses to make a loan on the security of the insured land
by reason of the subdivision law having been violated.
8. Coverage is provided for loss by reason of
damage to improvements because of any future exercise of the right to
extract minerals on the land.
9. After a l% deductible, coverage for loss by
reason of the enforcement of a property restriction which was violated
before your clients acquired their interest in the land.
10. Coverage for loss by reason of a lack of
marketability because a property restriction was violated before your
clients acquired their interest in the land.
An enhanced mortgage loan policy has additional
1. Loss by reason of usury
2. Loss by reason of being unable to obtain a
building permit as #7 above.
3. There is no charge for additional
endorsements; they are part of the enhanced policy.