The extended coverage owner's title insurance policy was
only available in the past by way of additional endorsements,
which could cost nearly $800.00. This coverage can now be
obtained for just an additional 15% of the owner's policy
Several important risks are covered on a post-policy basis.
This means that some defects in title that did not exist at
the time the insured purchased the property, but are now asserted
by others, are covered.
These post-policy covered risks involve cases in which someone
other than the homeowner claims to own an interest in the
title; or has rights affecting the title arising out of leases,
contracts, or options; or claims to have rights affecting
the title arising out of forgery or impersonation; or has
an easement on the land; or has a right to limit the insured's
use of the land; or in which the title is defective.
The following are just a few examples of this post-policy
- Post-Policy Forgery - The homeowner
is covered when someone forges the insured's signature to
a deed or mortgage in an effort to sell or impose a lien
or restriction on their home.
- Post-Policy Encroachment - This
coverage protects the homeowner if, after his or her purchase,
someone else builds a structure (excluding boundary walls
and fences) which encroaches on the homeowner's land.
- Post-Policy Cloud on Title -
Coverage is provided when the homeowner's title is clouded
because someone record in the land records a document containing
the legal description of the homeowner's land, whether by
mistake or in a specific effort to cause the insured harm.
- Post-Policy Adverse Possession
- Coverage is extended to a homeowner when someone claims
to have the insured's title arising out of someone else's
continued use and occupancy.
Previously, these types of risks were only covered if they
existed on the policy data, although the original Extended
Coverage Policy included coverage on a post-policy basis for
forgery and encroachments on the land.
- Expanded Access - The Extended
Coverage Policy expands access coverage to include, for
the first time, actual vehicular and pedestrian access to
and from the land, based upon a legal right.
- Building Permit and Zoning Violation
- Coverage is extended to a homeowner who is forced to remove
or correct existing structures that were built without a
building permit or that violate an existing zoning law or
zoning regulation. The zoning coverage even extends to boundary
walls and fences!
- Subdivision Violation - The
homeowner is covered where subdivision laws have been violated
prior to the homeowner's purchase and, as a result, the
homeowner is unable to obtain a building permit, is forced
to correct or remove the violation, or is unable to complete
a sale or loan transaction.
- Encroachment by Boundary Walls and
Fences - The homeowner is covered if he or she is
forced to remove a boundary wall or fence because it encroaches
onto a neighbor's land, onto an easement, or over a building
- Restrictive Covenant Violations
- Coverage is provided for violations of restrictive covenants
occurring before the homeowner acquired the land if the
homeowner is forced to correct or remove the violation or
if the homeowner's title is lost or taken because of the
violation. Examples of such violations would include the
following, if not permitted by the applicable restrictions:
(1) additional buildings; (2) types of roof material; (3)
color of home; (4) number of stories; and (5) types of fencing.