Both types give protection on the following items:
-
Valid legal description
-
Ownership - who is authorized to sell or mortgage the property Items of record that affect the USE of the property (i.e. easements, restrictions, agreements)
-
Valid access to the property
-
Monetary items of record that affect the property
So what does Extended Coverage include?
ALL of the above, PLUS the following:
-
Protection against Unrecorded Labor and Material Liens
-
Protection against Unrecorded Easements or Claims of Easements
-
Protection against loss caused by encroachment of residential structure onto adjoining lands, easement areas, or encroachments onto the insured premises by adjoiners, if not disclosed
What does Extended Coverage cost and how does it work?
Extended coverage is an additional 30%(subject to minimum) of the title premium. In addition, enough time must be allowed for the title company to have a physical inspection of the property done (allow 2-3 days). The results of the inspection will be provided in written form. ANY ITEMS disclosed at that time, such as questions of survey, encroachments, or unrecorded easements become EXCEPTIONS to Title Insurance. Only items that are not disclosed at that time can be filed as a claim against the title company. EXTENDED COVERAGE ALLOWS THE PURCHASER TO MAKE A MORE INFORMED DECISION, BUT DOES NOT MEAN THAT THE TITLE COMPANY IS LIABLE FOR THE ITEMS DISCLOSED BY THE PHYSICAL INSPECTION
