The American Land Title Association adopted the Homeowner's Policy of
Title Insurance on October 17, 1998. We are in the process of filing this form,
filing is necessary.
This policy is similar to the GOLD Owner's Policy. You may continue to
issue the Gold Owner's Policy where available, but we recommend issuance
of the new Homeowner's Policy of Title Insurance when it is available
in your state. There is no new Residential Loan Policy for residential property;
you may continue to issue the Gold Loan Policy (where available) or ALTA Loan
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).
The ALTA Homeowner's Policy of Title Insurance policies will have a premium
charge equal to 110% of the cost of the owner's (plus additional charges
where applicable for extended coverage).
ADDITIONAL COVERED RISKS (INSURING CLAUSES) AND COVERAGES IN THE POLICY:
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
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
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
15. Continuation of Coverage for (a) a spouse of the insured who 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
These additional coverages are extensive and require additional underwriting.
You should also do your normal search and except to matters in Schedule B.
If you cannot comply with our underwriting guidelines, please call our underwriting
personnel. If you have any questions, please do not hesitate to call the National
Legal Department in Houston, Texas at 800-729-1902.