Standard, Extended, and ALTA Homeowner’s Insurance -- What Are The Differences?
Two of the most frequently asked questions when it comes to title insurance are:
To begin with, owner's policies come in three varieties: Standard, Extended, and ALTA Homeowner's. It's crucial to remember that the ALTA Homeowner's Policy is pre-selected on Form 22 of the NWMLS (Northwest Multiple Listing Service).
As mentioned above, there are three types of insurance to choose from; however, ALTA Homeowner's policy stands above the others.
In comparison to the coverage provided by the Standard or Extended policies, the ALTA Homeowner's policy provides homeowners with the highest level of protection. Some home buyers might not be aware of the dangers to titles that are there and, as a result, may not recognize the explicit value of larger coverage. Customers should be aware that they always have an option, nevertheless.
The Homeowner's Policy (also known as the "ALTA Homeowner's Policy for One-to-Four Family Residence") has emerged as the new benchmark for residential transactions. The NWMLS Residential Purchase and Sale Agreement's Paragraph "e" specifies that this expanded coverage policy shall be the default policy. The majority of residential sales involving platted lots with an existing home should be conducted this way. However, it's not offered for all transactions, including those involving waterfront properties, expansive acreage, or when a corporation is the buyer.
If you can see the risks covered in a list or tabular style, it will be simpler to compare the three policies and make an educated choice. The title policy comparison that follows will make it clear what distinguishes one policy from the others.
To learn more about Insurance Policies, you may visit our website or give us a call at 317-214-6023 so we can assist you!