Differences between Standard and Extended Title Insurance
                     Differences between Standard and Extended Title 
Insurance
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Title insurance policy covers you and in most of the cases your lender also. 
It protects against the title defects of your property. The type of title 
insurance coverage you buy determines the types of title defects that you 
will be covered.
 Owners and lenders coverage policy: There are two different parties 
have an interest in the title coverage policies. Those are the property 
owner the person who wants to ensure as he owns the property without 
any clouds and the property lender the person that wants to guarantee a 
legitimate title exists and it can foreclose when you do not pay the loan 
taken by you. The lender’s title insurance policy protects the lender’s 
interest by covering the amount up to the loan. The owner’s insurance 
policy protects the buyer when a title problem comes up. The lender’s 
policies are generally contains an extended level of coverage. The 
owner’s coverage comes in a extended or standard forms.
Standard or CLTA policy: In California the standard coverage policy is 
often referred as California Land Title Association policy. The standard 
owner’s policy will cover the policyholder against matters which are on the 
public record, and against certain problems with execution by someone 
who was not competent, non delivery, including forgery and deeds. Which 
means if the seller is sold the property to you with a forged deed, the 
original or previous owner of the property returned and claim for 
ownership rights, your title insured company will protect you.
Extended or ALTA policy: The extended policy also called as an ALTA 
policy. The ALTA is stands for American Land Title Association. This 
policy covers the insurer from many more risks. To get an ALTA extended 
insurance policy, you may need a professional surveyor come out and the 
purchased land’s map. Once the surveyor does that, you can get coverage 
against buildings or other parties which are encroaching on your land. You 
can also get protected against unrecorded tax liens, unrecorded mechanic’s 
liens from workmen and other imperfections in title.
 Exclusions: The extended polices cover you against many number of 
things theoretically. But they usually come with some exclusions. When 
you get the title policy, title insurer researches title for identify existing 
issues and excludes them. The predictable items will be exclude by the 
insurer on a clean property. Those are may be utility easements or the 
county’s authority to charge property taxes. When the exclusions from 
coverage are normal, others can be serious. You might want to work to 
cure them before closing on the property with attorney or title officer, or 
your real estate agent.
The general coverage exceptions are taxes or assessments, easements, 
encumbrances or claims or easement, interests or claims, and facts not 
shown in the public records. Encroachment or boundary disputes, water 
rights, exceptions in patents or reservations, no patented mining claims, 
mechanics liens or construction are the exceptions.
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