Title Insurance... What does it cover??

Most of us wonder... What is Title Insurance? What does it cover? Why does my client have to have it? Here is some information on a few policy's for the State of Arizona and what they cover.... (This info is general and can vary between companies.)

STANDARD POLICY COVERAGE

· Someone else owns a recorded interest in your title

· A document is not properly signed, sealed, acknowledged or delivered

· Forgery, Fraud, duress, incompetency, incapacity or impersonation

· Defective recording of any document

· Unmarketability of title

· Lack of right of access to and from the land

ALTA RESIDENTIAL COVERAGE ABOVE ITEMS PLUS:

· Mechanic's lien protection for work or materials done prior to the policy date except where the insured has agreed to same

· Unrecorded liens by the HOA

· Others having rights arising out of leases, contracts, or options

· Someone else has an easement on the land

· Forced removal of the residential structure because it extends onto other land or on to any easement, or it violates a restriction shown in Schedule B, or an existing zoning law

· Plain understandable policy language

· Automatic inflation coverage increasing policy amount up to 150%

ALTA HOMEOWNERS COVERAGE ABOVE ITEMS PLUS:

· Living trust coverage

· Subdivision map act coverage

· Restrictive covenant violations by prior owners

· Enhanced access coverage

· Map inconsistency protection

· Post policy encroachment / post policy forgery

· Building permit/zoning violations by prior owners

If you have any questions about the title insurance in your area, contact your local Title Company for a list of coverages. Hope this helps to understand Title Insurance a little better! :)