What is a Tennessee Homeowner's Title Insurance Policy?

Updated: Jun 14

Many real estate agents and home buyers ask us, what is a Tennessee Enhanced Title Insurance Policy? Managing Attorney for CLOSED Nashville Carlton Drumwright shares the answer.




WHAT IS AN ENHANCED OR HOMEOWNER’S TITLE INSURANCE POLICY?


A Homeowner’s Title Insurance Policy (sometimes referred to as an Enhanced Policy) offers expanded coverage over that of the standard title insurance policy. In order to be eligible for a Homeowner’s Title Insurance Policy, the following requirements must be met:

1) The property must be improved and located in a platted subdivision or contain less than 25 acres;

2) The property must be a one-to-four family residential dwelling or condominium unit; and

3) The insured party must be either natural persons or beneficiaries of a Trust, who reside upon the property.




For a slightly higher premium, 20% over the standard premium, a Homeowner’s Title Insurance Policy offers coverages over and above the standard policy. For the typical buyer in Nashville this is a one time cost of $242. Below are just a few of the additional coverages offered by a Homeowner’s Policy:


a) Value-Added Protection

Standard title policies do not increase their coverage amounts as the value of the property increases. However, the coverage amount under a Homeowner’s Policy increases by 10% per year for five years up to 150% of the original policy limit.


b) Pre and Post Policy Protections

The Homeowner’s Policy provides coverage against most forgeries and liens for unpaid materials and labor not authorized by you.


c) Restrictive Covenant Violations

The Homeowner’s Policy provides coverage against the loss of title of property because of a violation of a restrictive covenant that occurred before you acquired title.


d) Building Permit Violations

With so many different zoning and permit laws, it can be hard to keep track. Don’t get caught paying for someone else’s oversight. The Homeowner’s Policy provides coverage against certain losses incurred because no legal building permit was obtained for the existing residence.


e) Encroachments

The Homeowner’s Policy provides coverage if you are forced to remove structures which were located on the property when the policy was issued (including boundary walls and fences), because the improvements encroach onto a neighbor’s property. Protection is also provided in the event that, after the policy is issued, a neighbor builds certain structures which encroach upon your property.


For most people, purchasing a home is the largest investment they will ever make. Protect your investment with a Homeowner’s Title Insurance Policy.


Carlton Drumwright, Esq. is an Owner/Managing Attorney at CLOSED Title Nashville. He is a 1999 graduate of The Nashville School of Law (J.D.) and a 1994 graduate of Middle Tennessee State University (B.S.). A former Assistant District Attorney General for the 20th Judicial District of the State of Tennessee, Carlton has litigated several notable cases during the course of his legal career. In 2008, in the case of State v. Dailey, he secured a landmark decision from the Tennessee Supreme Court which resulted in a milestone interpretation of federal and state Constitutional law. Carlton has been a guest lecturer at The Nashville School of Law, has sat as a Special Judge for the Davidson County Courts, and has provided training to several Middle Tennessee real estate companies regarding contracts and real estate law. He has been a lecturer and consultant for Vanderbilt Law School’s Divorce This House collaborative law education program, which provides training to judges, divorce attorneys and real estate professionals regarding proper valuation and disposition of real property in divorces. He focuses his legal practice in the areas of residential and commercial real estate closings, §1031 tax deferred exchanges, contract law and business law.