UNDERSTANDING TITLE INSURANCE
ENHANCED OWNER COVERAGE AVAILABILITY (RESIDENTIAL)
For most people, your home is the single largest financial
investment you will ever make. Consequently, obtaining a Residential Owner's
Policy of Title Insurance (Residential Owner's Policy) protects your largest
investment. At Old Republic National Title Insurance Company we strive to
provide our customers with the necessary information to make informed decisions
about their Residential Owner's Policy. When you received your Commitment for
Title Insurance you also received a form asking if you would like to purchase
additional coverages that enhance the standard coverage of your Residential
These enhanced coverages are explained in more detail
The Amendment of Exception to Area and Boundaries*
Your standard Residential Owner's Policy will contain the
following exception to coverage:
conflicts, or shortages in area or boundary lines, or any encroachments or
protrusions, or any overlapping of improvements."
If you purchase this enhanced coverage the paragraph above
will be amended to read as follows:
"Shortages in area"
Consequently if you purchase the enhanced coverage you will
be insured for loss, costs, and attorney's fees and expenses resulting from
discrepancies, conflicts in boundary lines, encroachment, protrusions or
overlapping of improvements not shown on your survey and not
known at the time of closing.
The Restrictions, Encroachments, Minerals Endorsement (The T-19.1)*
If you purchase this enhanced coverage the endorsement
shown in the T-19.1 link below will be attached to, and become part of your
Residential Owner's Policy. Please read
the endorsement for the best understanding of the coverage. Here's the link:
T-19.1 - Restrictions, Encroachments, Minerals Endorsement
Amongst other covered matters, and unless otherwise
deleted, the T-19.1 endorsement provides additional coverage for the following:
- unknown violations of enforceable restrictive covenants
existing as of the date of your Residential Owner's Policy.
Encroachments - encroachments of your improvements
onto neighboring land or your neighbor's improvements encroaching
onto your land which are
not shown on your survey.
damages to the surface of your land resulting from the
extraction or development of minerals.
How Much Does it Cost?
The Amendment to Area and Boundary Exception is 5% of your
basic title insurance premium, but not less than $50.00.
The Restriction, Encroachment and Minerals Endorsement
(T-19.1) is 10% of your basic title insurance premium if purchased alone, but
not less than $50.00.
If BOTH coverages are purchased then the cost of the
Restriction, Encroachment and Mineral Endorsement is reduced to only 5% of your
basic title insurance premium. This results in you receiving both coverages for
the price of one.
Remember the charges for the additional coverage are
one-time-only fees that are collected at closing.
If purchased, the additional coverage lasts for as long as you, or your
heirs, own your home - whether that is 5 years or 105 years!
A satisfactory survey of the property is necessary to
obtain the enhanced coverages discussed above. After receipt of the survey, Old
Republic may make specific exceptions in your Residential Owner's Policy to
matters shown on the survey or delete certain provisions of the T-19.1.
Consequently it is important to understand that you will not have additional
coverages for matters reflected on your current survey or matters known at the
time of closing.
Whether you are buying
your first home or your fifth, we understand the closing process can be
stressful. If there is anything we
can do to make the process easier please do not hesitate to contact your
assigned closer. Thank you for choosing Old Republic National Title insurance