Maui Real Estate Blog

Title Insurance

Title Insurance is an insurance policy for lenders and home owners that protects against any sort of loss that may arise due to a defect in title. During escrow, home buyers will purchase a title insurance policy through their title or escrow company. It is important to note that there are options when it comes to title insurance. Standard ALTA policies will help with things that are missed during preliminary title reports. Examples of risks covered by ALTA policies include:

  • Someone else owns an interest in your title
  • A document is not properly signed
  • Forgery, fraud or duress
  • Restrictive covenants
  • Liens due to deed of trust, judgment, tax or special assessment, or charges by homeowners associations
  • Unmarketable title

Title companies offer more comprehensive title insurance policies than ALTA policies. These policies cover a far broader range of risks such as unrecorded liens, discriminatory covenants, covenant violations, and encroachment removals to name but a few. Take the time to review your policy options with your escrow company. While extra insurance may run 20% more than your standard ALTA policy, the security and protection that it provides may more than offset the price difference.

Pete Jalbert

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