An owner’s title insurance policy protects a property owner from title defects and claims on their property, but it doesn’t just provide blanket coverage for any and all issues. The specific nature of your property and what types of ALTA endorsements you may need will dictate the specifics of your policy, but what happens if you want to amend your title insurance policy after it’s been issued? We explore if it’s possible to make changes to your title insurance policy in today’s blog.
Changing Your Title Insurance Policy
One of the major benefits of title insurance is that a one-time fee provides you with coverage for as long as you own the property in question. Conversely, health insurance requires you to secure a new policy every single year, meaning you’re consistently making payments for coverage. One benefit that the health insurance model provides is that you can make adjustments each year depending on your needs. If you’re expecting a child or may undergo joint replacement, you may secure different healthcare coverage that accounts for these possibilities when it’s time to find a new policy. Altering or finding a new policy isn’t as nearly as simple when it comes to title insurance.
This is mainly due to the fact that your coverage is designed to provide protection for a long period of time. If it turns out that you don’t want a specific endorsement or protections from certain title issues, you’ll need to ensure these concerns are handled before you sign on the dotted line. Although you’ll want to review the language of your title policy for your specific rights, it’s likely very difficult to remove coverage options or otherwise amend a title policy once it has been agreed upon.
Now, that’s not to say that it’s never possible to alter a title policy that has been signed. It’s possible (but again, not guaranteed, so check your policy) to secure additional or supplemental coverage if you decide you need it. Of course, you’ll need to do this prior to the discovery of issues that could complicate securing this coverage.
However, let’s say that your property value has increased significantly in recent years, and you simply want to secure a little more coverage to cover the full value of the property should a legitimate claim be brought against you. Many title insurance companies would be willing to offer additional coverage assuming that a subsequent investigation yields no potential concerns or liabilities, but again, review your initial policy for confirmation. It’s possible that the only way to secure additional coverage or alter a current agreement is to buy an entirely new title policy.
At Commercial Partners, we’ll make sure that a title insurance policy is created with your specific property needs in mind so that you get the exact coverage you need without any unnecessary costs. We’ll also sit down with you and explain the nature of your policy so that you completely understand what type of coverage you’re getting before you sign on the dotted line. We want to ensure you are completely satisfied with a policy before you purchase it, but we can also work with you to secure additional coverage if it’s possible based on the terms of your policy if that’s something you desire down the road.
For more information about title insurance policies, or for assistance completing a different commercial real estate matter, connect with the team at Commercial Partners today at (612) 337-2470.