ALTA Homeowner's Policy: Compare the Advantages

The ALTA Homeowner's Policy is an enhanced form of owner's title insurance available for 1-4 unit residential properties. It expands the number of covered title risks well beyond a standard CLTA policy, providing homeowners with significantly broader protection. Fidelity National Title issues this extended coverage automatically on qualifying properties.

Standard coverage items include protection against someone else owning an interest in your title, improperly signed documents, forgery and fraud, defective recording, restrictive covenant violations, liens from deeds of trust, judgments, tax assessments, and HOA charges, unmarketable title, lack of access, and mechanic's lien protection.

The ALTA Homeowner's Policy adds protection for forced removal of structures that extend onto other land or onto an easement, violate a restriction, or violate existing zoning laws. It also covers inability to use land for a single-family dwelling due to zoning or restrictions, unrecorded HOA liens, unrecorded easements, and rights arising from leases, contracts, or options.

Post-policy coverage is where the ALTA Homeowner's Policy truly distinguishes itself. It covers post-policy defects in title, forgery, easements, contract or lease rights, limitations on use of land, damage from mineral or water extraction, living trust coverage, encroachment by neighbors, and prescriptive easements. It also provides an automatic increase of 10% annually up to 150% of the original policy amount.

Additional enhanced coverage includes vehicular and pedestrian access, damage to structures from use of easements, incorrect street address, map inconsistencies with legal description, coverage for a spouse acquiring property through divorce, building setback violations, and discriminatory covenant protection. The policy provides coverage forever — not just while you own the property.

Team Goeglein at Fidelity National Title recommends the ALTA Homeowner's Policy for every qualifying residential transaction in the South Bay. Matt Goeglein and Xavier de la Piedra IV can explain the specific advantages for any property.