Policy Types

(CLTA/ALTA HOMEOWNER'S POLICY OF TITLE INSURANCE)

(10% to 20%, Additional Premium)

This policy offers additional coverage from the ALTA Residential Title Insurance Policy, including:

• Post Policy
  • forgery
  • encroachments
  • extraction of minerals or water
  • living trust coverage
• Enhanced marketability
• Building setback violations
• Discriminatory covenants
• Insurance coverage forever
• Violations of subdivision laws or regulations*
• Building permit violations
• Zoning law violations
• Encroachment of improvements onto adjoining land*
• Enhanced access
• Damage to structure from extraction of minerals
• Enhanced marketability
• Reversion coverage for covenant violations
• Increase in policy amount by ten percent (10%) each year for the first five years.

*These coverages are subject to a deductable and maximum indemnity liability, which may be less than the policy amount.

The policy DOES NOT COVER among other things, the following:

• Matters which a correct survey would show.
• Unrecorded matters.
• Matters which a physical inspection of the property would disclose.
• Rights of parties in possession.
• Unpatented water and mineral rights.
• Matters known, created or assumed by the insured.

ALTA RESIDENTIAL OWNER'S POLICY:

The ALTA RESIDENTIAL TITLE INSURANCE POLICY is an Owner's Policy insuring owners of a 1-4 family residential lot or condominium unit. It has been drafted in easy to read language. This policy IN ADDITION TO THE BASIC COVERAGE PROVIDED BY MOST TITLE INSURANCE POLICIES, protects the insured against losses caused by:

• Mechanic's Liens (labor and material liens) arising out of work done on the property which the insured did not agree or agree to pay for.
• Major encroachments - The insured is protected against forced removal of an existing structure (other than a boundary wall or fence) because it extends onto adjoining land or onto an easement.
• Unrecorded interests arising from off record leases, contract or options.
• Zoning violations.
• Violations of recorded, covenants, conditions and restrictions.

ALTA LENDER'S POLICY:

(Extended coverage) for institutional lenders only - Banks, Savings & Loans, Federally Insured Loans, Insurance Companies.
Insures the priority and enforceability of the lien of the deed of trust.
Covers losses by covered record matters as well as some non-record matters such as:

• Encroachments.
• Unrecorded Easements.
• Access.
• Loss of Priority.
• Unrecorded Liens and Encumbrances.

As you can see, the coverage is quite broad. We may require an inspection or a survey.
This policy is available for most types of real property.

ALTA OWNER'S POLICY:

(Extended Coverage)
Do not confuse this with an ALTA Residential Owners. This is a broad form of insurance given in California.
This policy requires an ALTA survey to be provided to the title company. In addition to the coverage given by a CLTA policy, it covers losses by:

• Encroachments (not disclosed in the policy).
• Lack of access.
• Rights of parties in posession.
• Unrecorded liens and encumbrances.
• Taxes.
• Matters which a correct survey would show.

DOES NOT COVER MATTERS CREATED OR ASSUMED BY OUR INSURED, (true for all policies).

As a result, when this type of coverage is requested, we may require:

• An ALTA Survey ($3,000 to $7,000 cost).
• A field inspection (usually done by the company)
• A check with all utilities to make sure they have no unrecorded easements.
• Copies of all leases and/or tenant lists.

Since these requirements take time to complete, plan ahead. Further, we will show as exceptions in the policy all matters we find, so there may be an amended preliminary report issued after the inspection reflecting additional exceptions.

Note: Some coverages may not be available in your area, due to legal, regulatory, underwriting requirements, or other restrictions. This checklist provides a brief summary and highlights of the various policies. Reference is made to the full policy for all of the provisions, including exclusions and conditions. Please contact your North American representative for information.

Some states offer additional policies. Please contact your local NAT office for more information.