News
When purchasing a home, buyers often have the option of choosing either a standard or enhanced owner’s title insurance policy. Both policies protect the buyer’s ownership interest in the property, but the enhanced policy provides several valuable protections that go beyond the coverage included in a standard policy. The enhanced policy is available for purchases of one-to-four-family residences and condominiums when the property is being purchased in an individual’s name, rather than in the name of an LLC, corporation, partnership, or other entity. A standard owner’s policy protects against common title problems, including defects, liens or claims against the property, an unmarketable title, and a lack of legal access. The enhanced policy includes those protections while adding coverage for issues that are especially relevant to homeowners, including certain building permit and zoning violations, improper subdivisions, vehicular access problems, and structures that encroach onto the property after the buyer takes ownership. One of the most important added benefits is post-policy forgery protection. A standard policy generally protects against title issues that existed before the buyer purchased the property. The enhanced policy also provides protection if someone later forges the homeowner’s signature or creates a fraudulent deed that clouds the homeowner’s title. With real estate and identity fraud becoming an increasing concern, this protection alone can provide homeowners with valuable peace of mind. The enhanced policy also includes an automatic increase in coverage. The policy amount increases by 10% each year during the first five years of ownership, up to 150% of the original policy amount. This helps the coverage keep pace as the value of the property increases. In Pennsylvania, the enhanced policy is available for a one-time premium that is only 10% higher than the standard owner’s policy premium, with no annual renewal cost. At Abstract Associates, we believe buyers should understand the difference between the two policies before making their decision. For a relatively small additional cost at settlement, the enhanced policy provides broader protection that can continue to benefit the homeowner long after closing.
Top 10 Things People Don’t Understand About Property Insurance
Learn how REALTORS® can guide buyers through the home inspection process, manage expectations, address concerns, and keep transactions moving toward closing.
Learn how VA loans work, their benefits for eligible homebuyers, and why REALTORS® and sellers shouldn’t fear offers that use VA financing.
Learn how hard money loans work, including their costs, terms, benefits, risks, and important considerations for real estate transactions in Pennsylvania.
Learn what a Qualified Mortgage (QM) is, how the Ability-to-Repay rule works, and the key protections designed to help mortgage borrowers.
Explore the biggest causes of real estate agent burnout, from unpredictable income and demanding clients to high-stakes transactions and constant availability.
Read an interview with NAR incoming president Colin Mullane about his journey into real estate, career experiences, leadership, and perspective on the REALTOR® profession.
Explore a conversation about mental health in real estate, including work-life balance, asking for help, setting priorities, and supporting fellow REALTORS®.
Learn essential home showing tips for real estate agents, from reviewing showing instructions to staying organized and creating a smooth experience for buyers.
When purchasing a home, buyers often have the option of choosing either a standard or enhanced owner’s title insurance policy. Both policies protect the buyer’s ownership interest in the property, but the enhanced policy provides several valuable protections that go beyond the coverage included in a standard policy. The enhanced policy is available for purchases of one-to-four-family residences and condominiums when the property is being purchased in an individual’s name, rather than in the name of an LLC, corporation, partnership, or other entity. A standard owner’s policy protects against common title problems, including defects, liens or claims against the property, an unmarketable title, and a lack of legal access. The enhanced policy includes those protections while adding coverage for issues that are especially relevant to homeowners, including certain building permit and zoning violations, improper subdivisions, vehicular access problems, and structures that encroach onto the property after the buyer takes ownership. One of the most important added benefits is post-policy forgery protection. A standard policy generally protects against title issues that existed before the buyer purchased the property. The enhanced policy also provides protection if someone later forges the homeowner’s signature or creates a fraudulent deed that clouds the homeowner’s title. With real estate and identity fraud becoming an increasing concern, this protection alone can provide homeowners with valuable peace of mind. The enhanced policy also includes an automatic increase in coverage. The policy amount increases by 10% each year during the first five years of ownership, up to 150% of the original policy amount. This helps the coverage keep pace as the value of the property increases. In Pennsylvania, the enhanced policy is available for a one-time premium that is only 10% higher than the standard owner’s policy premium, with no annual renewal cost. At Abstract Associates, we believe buyers should understand the difference between the two policies before making their decision. For a relatively small additional cost at settlement, the enhanced policy provides broader protection that can continue to benefit the homeowner long after closing.
Top 10 Things People Don’t Understand About Property Insurance