Estimated reading time: 2 minutes
Do You Need Additional Title Coverage?
To start, if you previously purchased property and obtained an Owner’s Title Insurance Policy, you may need additional title insurance coverage. Perhaps your policy does not reflect the current value of your property, asking about extra coverage may be beneficial. If you refinance your mortgage or obtain a construction loan/home equity loan to improve your property, it is a good practice to review the amount of your Owner’s Title Insurance Policy to confirm that it provides enough protection.
The Initial Steps To Consider Additional Coverage
First, determine what kind of Owner’s Policy you have. Some policies (such as the ALTA Homeowner’s Policy) provide automatic, but limited, increases in the amount of insurance. Contact us if you need assistance determining what kind of policy you have.
Questions to Consider
Then, ask yourself:
- Has my property value appreciated since I purchased it?
- Has my land-only purchase been improved with a residence?
- Have I made improvements to my property since I purchased it?
- Does the amount of my mortgage exceed the amount of my current Owner’s Title Insurance Policy?
Finally, if you answered yes to any of these questions, you may want to consider purchasing additional title insurance coverage. Contact us to learn more!
Conclusion: Do you need extra insurance coverage?
To conclude, at Landmark Abstract we can help determine the proper way to increase your title insurance coverage. In some instances, you will not need to purchase a new Owner’s Title Insurance Policy, and additional coverage may be available to your existing policy. However, if you purchased a policy many years ago, you may also want to review the nature of your coverage to determine whether it would be beneficial to upgrade your policy