ALTA ENHANCED COVERAGE POLICY NOW AVAILABLE

On June 1, 1999 the New Jersey Commissioner of Banking and Insurance approved the issuance of the American Land Title Association Homeowner's Policy of Title Insurance.

The ALTA Homeowner's Policy of Title Insurance provides more coverage to owners than the previously filed enhanced policies ( Stewart's Gold Policy or Chicago's Castle Policy) or other ALTA Owner's Policies. The ALTA Homeowner's Policy contains 28 insuring clauses ("Covered Risks") and an additional optional clause 29 providing some insurance as to an attached map (to be used in some western states based on custom).

The ALTA Homeowner's Policy of Title Insurance policies will have a premium charge equal to 120% of the cost of the owner's (plus additional charges where applicable for extended coverage). However, several commonly issued endorsements are included in the cost of this policy and may not be charged for separately. These endorsements are the ALTA 9, ALTA, 6, 6.1 and 6.2, ALTA 8.1, Revolving Loan and No Survey - Survey Endorsements.

ADDITIONAL COVERED RISKS (INSURING CLAUSES) AND COVERAGES IN THE POLICY:
1. Future Forgery and Future Ownership Claims: post policy forgery, impersonation, and adverse ownership coverage will protect the insured against loss if someone else claims to own the title (Covered Risk 7).
2. Actual pedestrian and vehicular access based on a legal right (Covered Risk 11).
3. Forced correction or removal of an existing violation of covenants, conditions or restrictions (Covered Risk 12).
4. Loss of title because of a violation, before the insured acquired title, of covenants, conditions or restrictions (Covered Risk 13).
5. Existing violations of subdivision laws or regulations, resulting in inability to obtain a building permit, requiring correction or removal of the violation, or refusal to perform a contract to buy, lease or make a mortgage loan (Covered Risk 14). This Covered Risk is subject to a Deductible Amount and Maximum Dollar Limit of Liability (shown in Schedule A).
6. Forced removal or remedy of an existing structure (other than a boundary wall or fence) because any part of the structure was built without obtaining a proper building permit. (Covered Risk 15). This Covered Risk is subject to a Deductible Amount and Maximum Dollar Limit of Liability.
7. Forced removal or remedy of existing structures (other than a boundary wall or fence) because they violate an existing zoning law or zoning regulation (Covered Risk 16). Forced remedy (but not forced removal) is subject to a Deductible Amount and Maximum Dollar Limit of Liability.
8. Encroachments of: (a) existing structures onto a neighbor's land (Covered Risk 18); (b) neighbor's existing structures onto the Land (Covered Risk 19); (c) existing structures onto an easement or over a building set-back line (Covered Risk 20); or, (d) neighbor's structures (other than boundary walls or fences) onto the Land after Policy Date (Covered Risk 25).
9. Damage to existing structures because of use or maintenance of any easement (Covered Risk 21).
10. Damage to existing or future improvements because of the future use of the surface of the land to extract or develop minerals, water, or other substances (Covered Risk 22).
11. Supplemental taxes for an period before Policy Date because of construction or change of ownership or use that occurred before Policy Date (Covered Risk 24).
12. The residence with the address shown in Schedule A is not located on the land at Policy Date (Covered Risk 28).
13. Optional Clause [only in some western states] The map attached to the Policy does not show the correct location of the land according to the Public Records (Covered Risk 29).
14. Gap Coverage as to matters recorded before the insured's Deed (Condition 1f.)
15. Continuation of Coverage for (a) a spouse of the insured who receives title because of dissolution of marriage; (b) the Trustee to whom the insured conveys; or, (c) the beneficiaries of the insured's trust upon death of the insured (Condition 2.b.).
16. Stated substitute residence rental expenses and expenses of relocation, if the insured cannot use the Land (Condition 6.b.(2)).
17. Automatic Increased Coverage of up to 150% of Policy Amount over 5 years (Condition 9).
Due to numerous requests from our customers, we will be issuing this coverage automatically for all title orders received after September 4, 2000. Of course you have the option of declining this additional coverage on behalf of your clients if you wish. If you would like to continue receiving the standard policies only for your clients, please call us at (800) 734-6019 and we will note your files accordingly.