Accordingly, title insurers usually allow for 200% the purchase of a property to satisfy the indemnity due in the case of a claim being made by the policy holder. While in rare circumstances this amount may be found inadequate, in most cases, and considering less than 5% of polices are the subject of a claim, this convention will be an acceptable threshold.

Still title insurance coverage is at the discretion of the parties and an owner is able to require more from the policy than is generally stipulated. Clearly the products benefits will be reflected in the premium, but for specific needs this may well be a judicious exercise of thrift.

Coverage will remain effective as long as the insured has an interest in the land, and after the premium has been satisfied, there exists no further obligation on the part of the insured.

While coverage amount usually refers to the amount of indemnity offered by an insurance policy, it is equally applicable to the substantive coverage within a policy, and to this end is of great importance to the policy holder.
Every title insurance policy will contain express exclusions and it is prudent to become familiar with these implications prior to entering into an insurance agreement.

Express Exclusions – What’s the Point Then?

Often the very matters and contingencies that a policy holder may wish to guard against with the device of insurance are expressly excluded unless specifically incorporated by the purchaser.

For example disputes and claims arising from boundary differentiation, or interests relating to easements that are imposed on a title due to errors of omission on the register of deeds may be expressly excluded.

Further tax liens that a have been incurred by a previous owner directly attach to property and for one reason or another may then present themselves to be satisfied by an unwitting and subsequent property owner.

Generally, constructive notice of prior interests is implied when notice is available on inquiry, and often as is the case an unregistered lease or a short term residential lease that has not been alluded to in the negotiations leading up to a sale of property may later be discoverable by a claim of an interest being made by the lessee at some later date.

Statutory amendments related to water and mineral rights, or those pertaining to the legislation applicable to a particular state are also an overriding concern to insurers who would appear to lack any control over their occurrence, and be deprived of predicting their probability.

Extended coverage fees are applied to the premium charged for the policy and are readily available at the instance of the policy holder. Yet, it is absolutely crucial that the terms of any title insurance policy be understood and scrutinized before execution. Regardless of any statutory requirement, the advice of independent legal advice on the policy may also be desirable particularly if the terms of the policy are ambiguous.

Resources:

http://www.mtgprofessor.com/a%20-%20title%20insurance/questions%20about%20title%20insurance.htm

http://homebuying.about.com/od/homeshopping/qt/TitleInsurance.htm

http://www.loudounscene.com/my_weblog/2008/06/why-title-insur.html