What are the two main forms of title insurance?

The two main forms of title insurance are referred to as Standard and Extended. Standard title insurance typically covers risks associated with the ownership of property, providing protection against claims or liens that may arise from issues such as errors in public records, unknown heirs, or fraud. This policy is usually sufficient for most residential transactions.

Extended title insurance goes further by providing broader coverage. It not only includes everything that the Standard policy covers but also offers additional protections for risks that are not typically included. For example, it covers issues like survey matters and certain rights, easements, or other claims that could affect the property that may not be revealed by a standard title search.

Having this comprehensive understanding of both types of title insurance helps buyers and lenders assess their options based on the level of risk they are willing to accept and the specific circumstances of the property in question.