Types of Title Insurance

Lender’s Title Insurance Policy

The lender’s policy protects the lender’s interest up to the amount of the loan. It covers errors made in connection with the title search and any prior defects in title. The lender’s policy is purchased by the buyer/borrower and is usually required as a condition of the loan. However, the lender’s policy does not protect the buyer/borrower from any title claims. The policy remains in effect for the life of the loan; therefore, if the property is sold or refinanced, a new lender’s policy will be required.

Owner’s Policy Title Insurance

An Owner’s policy or Owner’s Title Insurance protects purchasers of real estate against defects in title. In case of a claim (loss), the title insurance company takes the liability and will reimburse the insured up to the face amount of the policy.

Title insurance policy will cover:

  • FINANCIAL LOSS due to covered claims that may be asserted against the title to the real estate, up to the face amount of the title policy
  • LEGAL COSTS if the title insurer has to defend the title to real estate against a covered claim
  • ALL SUCCESSFUL CLAIMS against the title to the real estate covered by the policy, up to the face amount of the policy.

Some of the past problems that have been covered by title insurance include:


For more title defects (CLICK HERE)

Without PA Title Insurance these problems become your problems and could cause significant financial loss.

Enhanced Owner’s Title Insurance & Enhanced Lender’s Title Insurance

Enhanced Title Insurance policy is also known as an “Eagle” policy. It covers 27 additional risks. Unlike “Basic” or standard title insurance, Enhanced title insurance covers additional 27 risks and even post closing issues, such as forgery, building permit violations, living trust coverage, and etc. It will also allows you to pass your home down to your living heirs without purchasing a new owner’s title policy.
In case of a claim, an Eagle policy will cover up to 150% of the original amount (10% annual increase for the first five years of coverage). For example, if you bought your home for $300,000, you can be reimbursed up to $450,000 for a claim on title.
The cost of Enhanced title policy is only 10% more than standard title insurance policy, the difference is minimal, and you are substantially reducing the risk and exposure on one of your biggest investments.
Remember – Enhanced Coverage is not for everyone, title coverage is available for principal residence and 1-4 family residences, including condominiums.

Compare J&A Abstract’s Enhanced Owner’s Policy Enhanced Standard Or Basic
Protection from:
1 Someone else owns an interest in your title x x
2 A document is not properly signed x x
3 Forgery, fraud, duress in the chain of title x x
4 Defective recording of any document x x
5 There are restrictive covenants x x
6 There is a lien on your title because there is:
   a) a deed of trust x x
   b) a judgement, tax, or special assessment x x
   c) a charge by homeowner’s association x x
7 Title is unmarketable x
8 Mechanics lien x
9 Forced removal of a structure because it:
   a) extends on another property and/or easement x
   b) violates a restriction in Schedule B x
   c) violates an existing zoning law* x
10 Cannot use the land for a Single-Family residence due to the use violates a restrction in Schedule B or a zoning ord. x
11 Unrecorded lien by a homeowners association x
12 Unrecorded easements x
13 Building permit violations* x
14 Restrictive covenant violations x
15 Post-policy forgery x
16 Post-policy encroachment x
17 Post-policy damage from extraction of minerals or water x
18 Lack of vehicular and pedestrian access x
19 Map not consistent with legal description x
20 Post-policy adverse possession x
21 Post-policy prescriptive easement x
22 Covenent violation resulting in your title reverting to a previous owner x
23 Violation of building setback regulations x
24 Descriminatory covenants x
25 Pays rent for substitute land or facilities x
26 Rights under unrecorded leases x
27 Plain language statements of policy coverage and restrictions x
28 Subdivision Law Violation x
29 Coverage for boundary wall or fence encroachment* x
30 Added ownership coverage leads to enhanced marketability x
31 Insurance coverage for a lifetime x
32 Post-policy inflation coverage with automatic increase in value up to 150% over first five years x
33 Post-policy living Trust coverage x