Enhanced Owner's Coverage


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 Owner's Policy.

These enhanced coverages are explained in more detail below:

The Amendment of Exception to Area and Boundaries*

Your standard Residential Owner's Policy will contain the following exception to coverage:

"Any discrepancies, 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:

  • Restrictions - 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.

  • Minerals - certain 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! 

*Don't Forget

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 Company.