What is Extended Coverage in Title Insurance and How Does it Protect Me?
Title insurance might not be the most exciting topic, but I'm here to tell you why Extended Coverage could be your property's best friend. You wouldn't buy a car without checking if it works properly, right? The same goes for property - you need to know what you're getting into.
Extended Coverage: Extended Coverage is a comprehensive form of title insurance that provides broader protection than standard policies by covering both known and unknown property title defects. This enhanced coverage includes protection against issues that could only be discovered through physical inspection of the property, such as boundary disputes, unrecorded easements, or encroachments.
Standard vs. Extended Coverage: Key Differences
Standard title insurance policies cover the basics - public record issues, forged documents, or unknown heirs. But Extended Coverage goes the extra mile. Think of standard coverage as a raincoat, while Extended Coverage is a full-body weather suit with reinforced seams.
Extended Coverage protects you from:
Unrecorded easements hiding in plain sight
Your neighbor's fence that's actually on your property
Unknown tenants claiming rights to your property
Access disputes that standard policies ignore
Yes, Extended Coverage costs more than standard policies. But consider this: fixing a boundary dispute out of pocket could cost tens of thousands of dollars.
Common Scenarios Where Extended Coverage Proves Valuable
I've seen countless situations where Extended Coverage saved the day. Picture buying your dream home, only to discover the previous owner built a garage that crosses your property line. Or finding out someone has been using your land as a shortcut for years and now claims they have legal rights to do so.
These real-life scenarios happen more often than you'd think:
Discovering an undocumented tenant living in a basement apartment
Finding out your driveway actually crosses your neighbor's land
Learning about unpermitted construction that affects property boundaries
Dealing with disputed access rights to shared facilities
The Process of Obtaining Extended Coverage
Getting Extended Coverage requires more homework than standard policies. The insurance company needs to inspect your property physically - they'll check boundaries, look for encroachments, and verify who's living there.
You'll need:
Current property survey
Inspection reports
Documentation about occupants
Proof of building permits
Making an Informed Decision
Your property investment deserves proper protection. Look at your situation carefully - are you buying in an older neighborhood? Does the property have multiple previous owners? Are there shared driveways or unclear boundary lines?
Ready to Protect Your Investment?
Bellhaven Real Estate's agents can guide you through title insurance options that match your needs. We'll help you understand the risks and benefits of Extended Coverage for your specific situation.