3 reasons you may need additional title insurance coverage

On Behalf of | Jan 10, 2024 | title insurance | 0 comments

Purchasing a home is a significant investment, and homeowners often secure title insurance to protect their property rights.

While standard title insurance is commonplace during real estate transactions, there are instances where additional coverage becomes necessary.

1. Unrecorded liens and encumbrances

One of the primary reasons to consider additional title insurance coverage is the presence of unrecorded liens and encumbrances. These are claims against the property that might not be in public records. Without proper coverage, you could be at risk of inheriting financial obligations tied to the property’s past. Additional coverage helps mitigate this risk by protecting against undiscovered liens that may arise.

2. Survey and boundary issues

In some cases, standard title insurance may not fully cover survey and boundary-related issues. These problems can include discrepancies in property lines, encroachments or easement disputes. Securing additional coverage ensures protection in case a boundary-related dispute arises. It offers financial support for potential legal costs and resolution.

3. Unresolved title defects

Despite thorough title searches, some defects may remain unresolved. These defects could include errors in public records, undisclosed restrictions or other issues that may arise post-purchase. Extra title insurance coverage acts as a safety net, providing financial protection in case such defects result in legal challenges or financial losses.

With the Naples real estate market finally taking a turn in favor of buyers, with only a 3.2% increase between November 2022 and 2023, the time may finally be right to make a move. In some cases, additional title insurance may help further protect your investment from unwanted risks.