Owner's vs Homeowner's Policy

There are two owner's policies available on most residential transactions, and buyers are rarely told there is a choice.

The standard owner's policy

Covers defects in title as of the date of the policy — forgery in the chain, undisclosed heirs, recording errors, liens that were missed. It is the classic product and it protects your equity for as long as you hold the property.

The enhanced ALTA Homeowner's Policy

Available on one-to-four family residences where the owner will live there. It covers everything the standard policy covers and adds protections against certain matters arising after the policy date, plus a set of risks the standard policy excludes.

The additions vary by state and underwriter, but typically include things like building permit violations by a previous owner, certain zoning and restrictive covenant violations, encroachments discovered later, and some forms of post-policy forgery.

What it costs

• Pennsylvania — the filed schedule charges the standard rate plus an additional 10%.
• Alabama — typically a higher per-thousand rate. On one common filed schedule the enhanced policy is $4.00 per thousand against $3.25 for standard.

On a $300,000 purchase that is roughly $217 more in Pennsylvania and $225 more in Alabama.

Is it worth it

Honest answer: it depends on the property. On a newly built home in a straightforward subdivision, the additional coverage is less likely to be called on. On an older property that has been extended, subdivided, or altered by previous owners without obvious permits, the extra cover addresses exactly the kind of thing that surfaces later.

Ask us about the specific property rather than deciding in the abstract.

Note: general information for Pennsylvania and Alabama property owners, not legal or tax advice. Rates, taxes, eligibility and deadlines are set by statute and by each state’s filed rate schedules and can change. Confirm the specifics with us and with a qualified professional before relying on them for a transaction.