All title insurance policies are not created equal. The American Land Title Association (ALTA) has two main insurance policies from which home buyers may choose. One is the less expensive 2006 Standard Policy and the other is the 2013 Extended Coverage Homeowner’s Policy. Many title firms quote the less expensive standard policy in order to appear less expensive. At Title One, we default to the Homeowner’s policy because we know this policy provides far more consumer protection for your clients.
For the added cost of 10%, consumers may purchase the superior insurance coverage provided by the Homeowner’s policy. Keep in mind that unlike other forms of insurance, title insurance is a onetime fee that provides coverage for as long as your clients own their home. While this policy is optional, remember that the lender’s policy typically does not provide any benefits to the consumer and that it is typically activated only after the lender is placed in title. Since your lender requires the purchase of lenders title insurance to protect them, shouldn’t your clients buy it too?
There are extensive differences between the standard title policy and the Homeowner’s policy. Please click on this link to see a comparison chart: