Guideline: ALTA Homeowner's Policy of Title Insurance Affidavit 2000


The American Land Title Association adopted the Homeowner's Policy of Title Insurance on October 17, 1998.

The ALTA Homeowner's Policy of Title Insurance provides more coverage to owners than the Gold Owner's Policy or other ALTA Owner's Policies. The ALTA Homeowner's Policy contains 28 insuring clauses ("Covered Risks") and an additional optional clause 29 providing some insurance as to an attached map (to be used in some western states based on custom).


1. Future Forgery and Future Ownership Claims: post policy forgery, impersonation, and adverse ownership coverage will protect the insured against loss if someone else claims to own the title (Covered Risk 7).

2. Actual pedestrian and vehicular access based on a legal right (Covered Risk 11).

3. Forced correction or removal of an existing violation of covenants, conditions or restrictions (Covered Risk 12).

4. Loss of title because of a violation, before the insured acquired title, of covenants, conditions or restrictions (Covered Risk 13).

5. Existing violations of subdivision laws or regulations, resulting in inability to obtain a building permit, requiring correction or removal of the violation, or refusal to perform a contract to buy, lease or make a mortgage loan (Covered Risk 14). This Covered Risk is subject to a Deductible Amount and Maximum Dollar Limit of Liability (shown in Schedule A).

6. Forced removal or remedy of an existing structure (other than a boundary wall or fence) because any part of the structure was built without obtaining a proper building permit. (Covered Risk 15). This Covered Risk is subject to a Deductible Amount and Maximum Dollar Limit of Liability.

7. Forced removal or remedy of existing structures (other than a boundary wall or fence) because they violate an existing zoning law or zoning regulation (Covered Risk 16). Forced remedy (but not forced removal) is subject to a Deductible Amount and Maximum Dollar Limit of Liability.

8. Encroachments of: (a) existing structures onto a neighbor's land (Covered Risk 18); (b) neighbor's existing structures onto the Land (Covered Risk 19); (c) existing structures onto an easement or over a building set-back line (Covered Risk 20); or, (d) neighbor's structures (other than boundary walls or fences) onto the Land after Policy Date (Covered Risk 25).

9. Damage to existing structures because of use or maintenance of any easement (Covered Risk 21).

10. Damage to existing or future improvements because of the future use of the surface of the land to extract or develop minerals, water, or other substances (Covered Risk 22).

11. Supplemental taxes for an period before Policy Date because of construction or change of ownership or use that occurred before Policy Date (Covered Risk 24).

12. The residence with the address shown in Schedule A is not located on the land at Policy Date (Covered Risk 28).

13. [Optional Clause only in some western states] The map attached to the Policy does not show the correct location of the land according to the Public Records (Covered Risk 29).

14. Gap Coverage as to matters recorded before the insured's Deed (Condition 1.f.).

15. Continuation of Coverage for (a) a spouse of the insured receives title because of dissolution of marriage; (b) the Trustee to whom the insured conveys; or, (c) the beneficiaries of the insured's trust upon death of the insured (Condition 2.b.).

16. Stated substitute residence rental expenses and expenses of relocation, if the insured cannot use the Land (Condition 6.b.(2)).

17. Automatic Increased Coverage of up to 150% of Policy Amount over 5 years (Condition 9).

Underwriting Requirements:

(1) Issue only on single family residence or residential condominium.

(2) Issue only if improved. Verify by review of tax/assessment search. If search does not reflect improvements, inspect the property.

(3) Issue only on bona fide sale, not existing ownership by insured.

(4) The subdivision should be a platted subdivision, that (a) is established or (b) is being developed by a known reputable developer or builder.

(5) Issue only on (a) a platted lot or (b) condominium unit. Do not issue on metes and bounds or other property without underwriter approval.

(6) If builder sale or new construction, verify either that (a) builder is known in community as residential builder or contractor, or (b) certificate of occupancy or local equivalent has been issued, or (c) utilities are now available to the land.

(7) Verify by tax/assessment search that single family residence with address to be shown in Schedule A. If tax/assessment search does not reflect residence, inspect or otherwise verify. Compare address in tax/assessment search to address shown in contract, if available. Do not show zip code on Schedule A.

(8) Verify with homeowners association that assessments paid current, that there are no known restriction violations (if the association has this information), and that any right of first refusal will not be exercised in current transaction (if there is a right of first refusal).

(9) Verify no pending or current construction ongoing.

(10) Verify that all bills paid on any prior construction within lien period.

(11) If map of land attached (not required on policy and not relevant unless Covered Risk 29 on Policy), verify that description is same as Schedule A description.

(12) Require seller to execute Homeowner's Policy affidavit and your customary affidavit of debts and liens.

(13) Verify by review of restrictions/covenants that the land may be used as a residence.

(14) Except as provided above, no survey or inspection is required.

(15) Policy may be dated and issued on date of settlement if your requirements have been met, funds disbursed, and you are in position to promptly record. You may show date of settlement as date of policy and you do not need to show recording information in Schedule A.

(16) Use our Schedule A with its preprinted Deductibles and Caps, or add those numbers to the Schedule A if you print your own Schedule A.

(17) Do your normal search.

The underwriting guidelines contained herein have been provided for general reference. The facts, circumstances, and location of the subject property should be considered when determining the issuance of the requested form or endorsement. Please note that all of the forms and endorsements included in this system may not be available in all states. Accordingly, please contact the appropriate Stewart Title Guaranty Company underwriting personnel in order to determine availability.

Compliance with the underwriting guidelines contained herein in no way obligates Stewart Title Guaranty Company to issue any form or endorsement.