Title insurance explained
Expanded vs. Standard Coverage
Not every owner's policy protects the same things. Here's a plain-language look at the differences between standard coverage, coverage without exceptions, and expanded coverage — so you can choose with confidence.
Know your options
Three Levels of Protection
A standard Owner's Policy of Title Insurance covers defects in title that existed before you bought your home — but it comes with a short list of standard "exceptions": matters like boundary and survey questions, parties already in possession, and easements not recorded in public records.
With a current survey and inspection, those exceptions can often be removed, giving you coverage without exceptions. And expanded coverage goes a step further, protecting against certain problems that appear after you buy — and growing with your home's value.
Side by side
What Each Policy Covers
| Coverage | Standard — with exceptionsCovers pre-closing title defects, minus standard exceptions. | Standard — without exceptionsSame coverage, with exceptions removed by a survey. | Expanded coverageBroader protection, including post-closing risks. |
|---|---|---|---|
| Defects, liens, or forgery that existed before you closed | Covered | Covered | Covered |
| Others claiming rights or possession of the property | Not covered | Covered with survey | Covered |
| Boundary lines, gaps, or survey overlaps | Not covered | Covered with survey | Covered |
| Easements and claims not shown in public records | Not covered | Covered with survey | Covered |
| Legal right of access to your property by road or walkway | Not covered | Covered with survey | Covered |
| Encroachments onto your land discovered after closing | Not covered | Not covered | Covered |
| Your fence, wall, or building encroaching onto a neighbor's land | Not covered | Not covered | Covered after deductible |
| Building permit violations by previous owners | Not covered | Not covered | Covered after deductible |
| Zoning violations | Not covered | Not covered | Covered after deductible |
| Violations of building or use restrictions (covenants) | Not covered | Not covered | Covered |
| Subdivision law violations | Not covered | Not covered | Covered |
| Forced removal of structures that violate land-use laws | Not covered | Not covered | Covered after deductible |
| Rent for substitute housing while a covered title problem is fixed | Not covered | Not covered | Covered |
| Mechanic's liens from a prior owner's unpaid contractors | Not covered | Not covered | Covered |
| Unpaid homeowners association dues or assessments left by a prior owner | Not covered | Not covered | Covered |
| Supplemental property tax liens for a prior owner's improvements | Not covered | Not covered | Covered |
| Errors in recorded tax or assessment records | Not covered | Not covered | Covered |
| Claims to water, mineral, or other rights in your property | Not covered | Not covered | Covered |
| Someone holding an existing lease or agreement to buy your home | Not covered | Covered with survey | Covered |
| Your property not matching the recorded map or plat | Not covered | Covered with survey | Covered |
| Forgery or fraud that happens after you close | Not covered | Not covered | Covered |
| Coverage that increases with your home's value | No | No | Yes, up to 150% |
| One-time premium, coverage for as long as you own your home | Yes | Yes | Yes |
This table is a plain-language summary. Exact coverages, deductibles, and options vary by policy form and underwriter — we'll review the specifics for your property before you close.
Real-world examples
What a Claim Can Look Like in Real Life
Boundary Dispute
Your new neighbor insists the fence line — or even their garage — sits on their side, but the old plat says otherwise. Legal costs to sort it out can add up fast. Expanded coverage can step in where a standard policy is silent.
Encroachment
A shed, driveway, or garden wall crosses onto your property. If it existed before you closed, coverage depends on your policy type. Expanded coverage can also catch encroachments discovered after you move in.
Zoning Violation
The previous owner added a room without a permit, and the city sends a violation notice after you close. Standard coverage typically doesn't help here; expanded coverage can cover the cost to fix or remove the violation.