Advantage Policy versus the Standard Policy
 
The owner's policy comes in two forms - a standard policy and an advantage (or expanded) policy.  The standard policy covers property owners for defects and liens in the history of the property through the date and time that the deed is recorded in the public records.  The advantage policy provides coverage for seventeen (17) additional risks, including some which may occur after the deed is recorded.
 
Below is a coverage comparison of the standard and advantage policies.
 
COVERAGE COMPARISON:
BOTH POLICIES INCLUDE:
 
Standard Policy
 
Advantage Policy
     
Mechanic's Lien Coverage
Yes
Yes
Third Party claims an interest in the title
Yes
Yes
Improperly executed documents
Yes
Yes
Pre-Policy forgery, fraud or duress
Yes
Yes
Non-recorded restrictive covenants
Yes
Yes
Defective recording of documents
Yes
Yes
Prior recorded liens not disclosed in the policy
Yes
Yes
Unmarketability of the title
Yes
Yes
Policy insurers anyone who inherits the property from the owner
Yes
Yes
 
 
 
ADDITIONAL COVERAGES IN ADVANTAGE POLICY:
 
 
 
 
 
Policy insures the Trustee of the property owner's estate-planning trust
No
Yes
Policy insures the Trustee of the property owner's estate-planning trust
No
Yes
Policy insures the beneficiaries of the property owner's trust upon the owner's death
No
Yes
Automatic increase in coverage up to 150% (not based on inflation)
No
Yes
Post Policy Forgery
No
Yes
Post Policy encroachment onto insured land
No
Yes
Legal right to ACTUAL vehicular and pedestrian access
No
Yes
Up to $25,000 coverage for certain losses due to Building Permit violations (subject to a deductible*)
No
Yes
Up to $25,000 coverage for certain losses due to zoning law violations (subject to a deductible*)
No
Yes
Up to $10,000 coverage for certain losses due to existing violation of subdivision law (subject to a deductible**)
No
Yes
Post policy structural damage from third party easement for mineral extraction
No
Yes
Violation of restrictive covenants identified in the Policy:
   -Resulting in loss from correction or removal
   ?Resulting in loss of title
   -Resulting in loss of use where single family dwelling prohibited
 
No
Yes
Forced removal of existing structures that:
   -Encroach onto an easement identified in the Policy
   -Violate a building restriction line identified in the Policy
   -Encroach onto neighbor's land (subject to a deductible** and maximum*** if boundary wall or fence)
 
No
Yes
Land cannot be used for single family dwelling under zoning ordinance
No
Yes
*        deductible of 1% of Policy Amount or $5,000.00 (whichever is less)
**      deductible of 1% of Policy Amount or $2,500.00 (whichever is less
***    maximum of $5,000.00
 
Both policies contain conditions and stipulations.  The information provided above is not intended to be legal advice.  An attorney should be consulted to answer any questions regarding a property owner's legal rights under the various policies.
 
Please contact a representative of Monument Title to provide an estimate of the cost of title insurance.