What does affirmative coverage mean?

Generally issued at the request of the mortgage lender, affirmative coverage ensures the acceptance of risk and the protection of the insured against such common title defects as encroachments, indefinite easement rights, pre-existing liens, or incorrect prior legal descriptions.

What is forced removal coverage?

Explanation: This endorsement provides insurance to an owner or lender against loss in the event that a specific easement holder shall (1) cause damage to a building located on the land at date of policy, or (2) compel the removal or alteration of an existing building located on the land at date of policy.

How does title insurance work?

Title insurance is a policy meant to protect home buyers and mortgage lenders from damages or financial losses caused by a bad title due to title defects. Most title insurance policies cover all the common claims filed against a title, including outstanding liens, back taxes and conflicting wills.

What is an ALTA 33 endorsement?

The issuance of an ALTA 33-06 Disbursement Endorsement is conditioned upon the absence of any filed or recorded mechanic’s liens or notices of mechanic’s liens, which have not been resolved to the satisfaction of the Company (e.g. paid, bonded, etc.).

What is an Alta 34?

The ALTA 34-06 endorsement is the standard form to provide “affirmative coverage” which indemnifies against loss or damage occasioned by certain title matters of record which are not likely to cause a loss of title or be enforced against the named insured.

Why is title insurance important?

Title insurance is an insurance policy that protects you, the home owner, against challenges to the ownership of your home or from problems related to the title to your home. The policy provides coverage against losses due to title defects, even if the defects existed before you purchased your home.

What four things are usually covered by homeowners insurance?

In short, homeowners insurance helps protect you, your home and your belongings from a variety of unexpected events. A standard policy includes four key types of coverage: dwelling, other structures, personal property and liability.

What is an ALTA 8.1 endorsement?

ALTA has developed the 8.1 (Environmental Protection) Endorsement, which provides affirmative insurance that there are no liens recorded for the cleanup of hazardous wastes on the insured property.

What is the ALTA 9 endorsement?

ALTA 9 Endorsement allows title companies to issue insurance policies to safeguard the lender against loss or damage resulting from violations of the deed restrictions, encroachments, and set back lines existing as of the date of the policy.

What is an Alta 34 06?

Which area is not protected by most homeowners insurance?

2. What’s NOT Covered On a Standard Homeowners Insurance … Earthquake and water damage. In most states, earthquakes, sinkholes, and other earth movements are not covered by your standard policy.

What is the difference between an RPR and title insurance?

The Real Property Report is just that – a report. It doesn’t provide you with any coverage, but it does provide you with valuable information. With title insurance, the story is the opposite. You really aren’t learning anything about your property, but you are getting coverage in case something comes up down the line.