Buying a home is one of the biggest financial decisions most people will ever make, and protecting that investment is essential. While homeowners often focus on securing the right mortgage and homeowners insurance, title insurance is another key safeguard that ensures your ownership rights are secure.
And just like with other insurance policies, you have options. Title insurance typically comes in two forms: standard coverage and enhanced coverage. Knowing the difference can help you make the right decision—and if you finance your home with CapCenter, you’ll be glad to know that we include enhanced coverage at no cost as part of our Zero Closing Cost loans.
What Is Title Insurance?
Title insurance protects homeowners and lenders against problems with the legal ownership of a property. Unlike most types of insurance that guard against future risks, title insurance looks backward in time. It covers issues that may already exist in the property’s history but weren’t discovered during the title search.
Common risks include:
- Unpaid property taxes or liens left by previous owners
- Errors in public records, such as an incorrect legal description of the property
- Fraud or forgery in past transfers
- Claims from undisclosed heirs or previous owners
Without title insurance, you could face costly legal battles—or even risk losing your home—if someone challenges your ownership rights after closing.
Standard Title Insurance: Basic Protection
A standard title insurance policy covers the most common risks associated with a property’s history. It’s designed to protect you if an issue surfaces that should have been resolved before you purchased the home.
Standard coverage typically protects against:
- Fraud or forgery in past property documents
- Errors in public records
- Unpaid property taxes or liens overlooked during the title search
- Claims from previous owners or heirs
In short, a standard policy protects you from hidden problems tied to the property’s past.
Enhanced Title Insurance: Extra Peace of Mind
An enhanced owner’s policy goes beyond the basics by providing broader coverage for risks that could emerge after you take ownership. This level of protection is especially valuable for buyers who want added peace of mind that their largest asset is secure.
Enhanced coverage often includes:
- Inflation protection – your coverage amount automatically increases each year (typically for the first five years) to keep pace with rising home values, at no extra cost.
- Building permit violations – if the previous owner made improvements without proper permits, you’re covered if you’re forced to fix or remove them.
- Encroachments – protects against structures (like fences or garages) built across property lines, including new encroachments from neighbors after purchase.
- Access disputes – ensures you have legal access to your property if a dispute arises.
- Covenants, conditions, and restrictions (CC&Rs) – coverage if you’re financially impacted by violations of HOA rules that occurred before you owned the home.
- Zoning issues – protection if past changes to the home violated zoning laws and require costly fixes.
- Supplemental taxes – coverage if you’re hit with unexpected property tax assessments for periods before you owned the home.
This expanded protection gives homeowners added security against both undiscovered historical problems and certain future challenges.
Standard vs. Enhanced: Which Should You Choose?
The main difference between standard and enhanced title insurance is the scope of protection. Standard covers the basics, while enhanced casts a much wider net.
For many homeowners, the additional coverage is worth the slightly higher premium—especially since title insurance is a one-time cost at closing, not a recurring expense.
And here’s where CapCenter makes the decision easier: we include the cost of an enhanced title insurance policy in every Zero Closing Cost mortgage we offer. That means you’ll enjoy maximum protection for your homeownership rights without paying extra.
How CapCenter Helps
At CapCenter, our goal is to make the homebuying process simple, transparent, and cost-effective. By eliminating closing costs—including the premium for enhanced title insurance—we save you thousands of dollars at the closing table. More importantly, we make sure you walk away from settlement with the peace of mind that your investment is fully protected.
Whether you’re buying your first home or your forever home, our team will guide you through each step and ensure you have the right safeguards in place.
FAQs About Title Insurance
Do I need to buy title insurance?
If you’re financing your home, your lender will almost always require a lender’s title insurance policy. An owner’s policy is optional but strongly recommended to protect your personal ownership rights.
Does title insurance have monthly payments?
No. Title insurance is a one-time premium you pay at closing. The policy lasts for as long as you own your home.
Is enhanced coverage always worth it?
Many homeowners think so. For a modestly higher cost, you get broader protection, inflation coverage, and added peace of mind. With CapCenter, it’s even better—because we provide enhanced coverage at no cost to you.
Final Thoughts
Title insurance may not be the most talked-about part of buying a home, but it’s one of the most important. Standard coverage provides solid protection, while enhanced coverage offers added peace of mind against a wider range of risks.
With CapCenter’s Zero Closing Cost loans, you don’t have to choose between cost savings and comprehensive protection—you get both. That’s the CapCenter difference.
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