What does extended coverage title insurance protect against?

Extended coverage title insurance is designed to provide a broader range of protection than standard title insurance policies. It specifically covers claims that may exist both on the public record and off the public record. This includes unrecorded liens, which may not be immediately evident during a title search but can impact the ownership and marketability of the property.

By ensuring coverage for issues that are not filed in public records, such as certain claims by prior owners or specific types of liens that have not been recorded, extended coverage title insurance offers an additional layer of security for property buyers. This is important because real estate transactions can involve complex issues that may not emerge until after the purchase has been finalized, potentially leading to significant financial troubles for the new owner.

Standard title insurance typically protects against claims that have been recorded, which does not address the full spectrum of risks associated with property ownership. For this reason, extended coverage is particularly valuable to buyers who want comprehensive protection from various types of undisclosed risks that could arise.