The Time has Come to Enhance Title Insurance Coverage for Homeowners

When you buy a home, you’re not just purchasing four walls and a roof—you’re investing in your financial future. But what if someone claims rights to your property after closing? What if an undiscovered issue with your title arises? That’s where title insurance steps in. And now, Midtown Law is making sure you get the best protection available.

While the standard policy has long been sufficient for most homebuyers, the Enhanced Coverage provides more protection for slightly increased one-time costs. If you’re buying a home, it’s important to understand why this matters and how it impacts you.

What is Title Insurance?

Title insurance is a one-time purchase at closing that protects homeowners against defects, liens, or claims against their property title. Unlike homeowner’s insurance, which covers physical damages to a home, title insurance safeguards against ownership disputes, fraud, and other legal issues tied to the home’s history.

Historically, the industry standard has been to order the Standard Owner’s Title Insurance Policy, which covers recorded liens, ownership disputes, and title defects. However, the “Enhanced” Homeowners Owner’s Title Insurance Policy, an upgrade available to purchasers of single-family residences in platted subdivisions, offers significantly more coverage, ensuring homeowners are better protected in an unpredictable world.

Why the Enhanced Policy is a Game-Changer

Here’s what makes the Enhanced Policy a smart investment and the best option:

• Expanded Coverage for Boundary & Access Issues: Protection against encroachments, unrecorded easements, and access limitations.
• More Comprehensive Zoning & Permit Protection: If your home violates zoning laws without your knowledge, the Enhanced Policy offers solutions.
• Security Against Post-Policy Fraud: Covers risks that arise after you buy your home, like forgery and post-closing title fraud, which have become increasingly common in North Carolina.
• Automatic Inflation Protection: Over time, your policy coverage amount will automatically increase to 150% of the original coverage amount to match expected market value growth.

Comparing Standard vs. Enhanced Coverage

The Enhanced Owner’s Policy covers significantly more than the standard policy. Here’s a quick comparison:

Real-World Examples of Enhanced Protection

• Forgery Case Study: A homeowner discovers someone fraudulently transferred the title to another person and steals the equity in the home by adding additional mortgages. The Enhanced Policy covers legal expenses to rectify the fraud.
• Boundary Dispute: A neighbor claims part of your yard is theirs due to an encroachment or unrecorded easement. The Enhanced Policy covers the legal costs to resolve the issue.

Title insurance isn’t just paperwork—it’s your financial safety net. Buying a home is one of the biggest investments you’ll make, and Midtown Law believes every homeowner deserves the best protection available. That’s why we strongly recommend the Enhanced Homeowners Title Insurance Policy whenever available.

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