The Difference between Standard and Enhanced Title Insurance Coverage

Purchasing property is a large investment that you want to protect. Title insurance is the way you protect this investment from costing you thousands of dollars. TitleQuest, a title company in Virginia and North Carolina*, offers both standard and enhanced owner’s title insurance. But what is the difference? In this blog we will talk about title insurance, the differences between standard and enhanced, and which is the best option for you.

What is Title Insurance?

Title insurance is purchased by the buyer of a real estate property and protects them against any questions on the legality of their ownership. In addition, title insurance protects the property owner from any previously undisclosed liens on the property, fraud, etc. When selecting a title insurance plan, you can typically choose between standard (or basic) title insurance or enhanced title insurance.

Standard Title Insurance

Standard title insurance protects the property owner from any problems with the title leading up to and on the date of the recordation of the Deed. Any problems that occur after the date of recordation of the Deed are not covered by the title insurance policy. With a basic or standard owner’s title insurance policy, the homeowner is covered in the following cases:

  • Third-party claims to the title of the property
  • Mistakes in the public record
  • Any forgery, fraud, or duress 
  • Unmarketability of the title
  • Previously recorded liens not disclosed during time of policy purchase
  • Non-recorded restrictive covenants

Enhanced Title Insurance

With enhanced title insurance the property owner receives the coverages found in the basic title insurance policy along with many additional coverages. These can include problems that occur after the recordation of the Deed as well as increases in coverage due to the increased value of the property. With enhanced owner’s title insurance, the property owner is covered in these cases:

  • Insures any inheritors of the property
  • Forgery or fraud after Deed recordation
  • Encroachments after the policy take effect
  • Zoning and building permit issues
  • Lack of access to the property—pedestrian and vehicular 
  • Subdivision violations

Which is best for you?

Title insurance is the ultimate way to protect your property investment. At a minimum, you should be purchasing standard owner’s title insurance. You want to make sure that once the Deed is recorded, no other issues arise and question your legal ownership.

In general, it is always a good idea to purchase enhanced owner’s title insurance. This is particularly true if you are purchasing a piece of land that you plan to build on. The small additional cost at closing is well worth the value add you receive.

Basic and Enhanced Title Insurance in Hampton Roads

TitleQuest is a title company in Virginia and North Carolina*. If you are looking for a trusted title company that offers basic and enhanced title insurance, we are the best option for you.

Our underwriters review title examinations for any problems with your title before closing and ensure that when you sign the dotted line, your title is free and clear. And while we stand behind our underwriting efforts, mis-indexed records, incorrect surveys, and other matters can pop up when you least expect it. That is why we always offer enhanced owner’s title insurance to protect customers against unforeseen and hidden issues. It is well worth the value add and the small additional cost.

Discover a true sense of ease by working with TitleQuest as your title company in VA and NC*. Work with us today by going online and placing a title order. Our team is available to answer any questions you may have at 757-962-9844

*Title Insurance Only