Check Your Understanding Answers
- Explain why title insurance is unlike other forms of insurance.
Title insurance is unlike most forms of insurance because it protects against past events and is paid with a one-time premium.
- Who typically pays for the homeowner’s title insurance at closing?
In southern California it’s more common for the seller to pay the premium; however, the buyer usually pays in northern California. The cost can also be divided between the seller and buyer.
However, buyers usually pay for lender title insurance policies.
- What is the difference between CLTA and ALTA policies?
CLTA is the basic standard policy and ALTA provides extended coverage. ALTA includes a survey and ALTA-R does not.
- What items are not covered by any title insurance policy?
- Defects known to the insured but not disclosed to the title insurer
- Government zoning regulations
