What type of property issue does extended coverage title insurance address?

Extended coverage title insurance is designed to provide protection against a broader range of potential issues than standard title insurance. One of its key advantages is that it addresses unrecorded easements and encroachments. These are problems that may not be reflected in public records but can still significantly affect the use and value of the property.

Standard title insurance typically only covers issues that are recorded in public conveyancing and property records. However, many problems, such as unrecorded easements, which allow others to use a portion of the property, or encroachments where a neighbor's structure might cross onto the insured property, can arise without being documented. Extended coverage fills this gap, offering peace of mind that the title is good not just from an administrative standpoint but in practical use as well.

By protecting against these types of issues, extended coverage title insurance helps buyers and mortgage lenders minimize their risk and ensures they are safeguarded against claims that could arise after closing the transaction. This coverage is essential for those looking to secure their investment against potential unforeseen disputes or losses related to property boundaries and rights.