Title Insurance - Enhanced coverage - What does this mean for your client? Is it necessary? For an additional 20% of the regular premium, you can obtain for your clients an Enhanced Coverage Residential Policy which provides additional coverage beyond that which the standard policy covers. In addition to the standard policy coverage, there are 10 additional items in the enhanced policy:

1. Liability automatically increases by 5% of the face amount of the policy per year for the first 5 years to a maximum of 125% of the face amount of the policy.

2. Access coverage includes both pedestrian and vehicular access.

3. Coverage is provided for loss by reason of any future forgery of any instrument by which someone else claims to own the land or have a lien thereon.

4. After a 1% deductible, your client is insured up to $25,000 by reason of a forced removal of the residence as it existed when it was purchased because it or any portion of it was built without a building permit.

5. Coverage for loss by reason of any future encroachment when a neighboring property owner attempts to build on a portion of your client’s land without their consent.

6. Coverage for loss by reason of a reversion or claim of reversion arising out of a prior violation of a property restriction.

7. After a 1% deductible, your client is insured against loss by reason of their being unable to obtain a building permit for an addition or remodeling, or a buyer refused to purchase, or a lender refuses to make a loan on the security of the insured land by reason of the subdivision law having been violated.

8. Coverage is provided for loss by reason of damage to improvements because of any future exercise of the right to extract minerals on the land.

9. After a l% deductible, coverage for loss by reason of the enforcement of a property restriction which was violated before your clients acquired their interest in the land.

10. Coverage for loss by reason of a lack of marketability because a property restriction was violated before your clients acquired their interest in the land.

An enhanced mortgage loan policy has additional coverage for:

1. Loss by reason of usury

2. Loss by reason of being unable to obtain a building permit as #7 above.

3. There is no charge for additional endorsements; they are part of the enhanced policy.