ALTA/CLTA HOMEOWNER’S COVERAGE
We want policies for homeowners that provide coverage relevant in today’s world. No home purchaser should even consider buying their home without also demanding the Homeowner’s Title Insurance Policy.
The ALTA/CLTA Homeowner’s Coverage policies provide new and very exciting coverages. These coverages should result in homeowners wanting their own policy of title insurance on every home they purchase. Below is a brief description of just some of the problems covered by this new policy:
- Post-policy forgery or impersonation leaving you with no record title or with mortgages on your home you never made.
- Someone claiming that during your ownership a prescriptive negative easement, such as a view easement, has been created over your land, limiting your use.
- Neighbors building encroaching structures onto your land after you purchase it.
- Anybody after you purchase your home recording a deed, mortgage, or other document that by mistake describes your property instead of the land intended, thereby leaving you with a clouded title and expenses and a hassle to get it corrected.
- Lack of actual physical access for both vehicles and pedestrians to and from your home. (Other policies only provide coverage for lack of a legal right of access)
- Pre-existing violations of CC&Rs which someone is trying to force you to correct or remove. This coverage applies even if the CC&Rs are excepted from coverage in schedule B.
- Subdivision law violations of previous owner. (In some areas the title is void if the subdivision laws have been violated. In others you cannot obtain building permits to make the desired improvements)
- Building permit violations of previous owners. (This is very valuable to the unwary purchaser because it is virtually impossible to know whether all portions of the home you want to purchase were constructed with a building permit)
- Zoning law or regulation violations of previous owners which the insured is forced to remedy or remove.
- Encroachments of existing structures onto neighboring property or onto easements affecting your home. (There is even coverage for boundary wall or fence encroachments)
- The residence with the address shown in the policy not being located on the land described.
One of the great benefits of the Homeowner’s Policy is it solves a problem inherent in other forms. Other policies terminate when you transfer your title except as to warranty liability. This has been problematic for owners and estate planning professionals. If you purchase a policy when you buy your home and subsequently place the title in your trust for estate planning purposes, you may have very well lost your title insurance coverage. Not so with the new Homeowner’s Policy.