Standard vs. Eagle Policy®

Understanding Your Title Insurance Coverage Options

If you’re reviewing closing documents for a home purchase, you may notice that there’s more than one type of owner’s title insurance available.

At first glance, the differences may not be obvious. But the level of coverage can vary significantly.

Understanding how these options compare can help you decide which type of coverage best fits your situation and your comfort level.

Note: As with any type of insurance, all policies contain exclusions, exceptions and conditions that apply to certain circumstances and may vary by state law. This information is a general overview of most coverage.

At closing, you may be offered:

A Standard Owner’s Policy1

A Standard Owner’s Policy with a Post-Policy Forgery Endorsement2

An Eagle Policy®3

Why different types of owner’s policies exist.

Except in limited circumstances, a Standard Owner’s Policy helps insure against losses resulting from title risks existing prior to the policy date, such as undisclosed liens and ownership title defects.

But not every title risk appears in advance. That’s where “post-policy” risk comes in. In simple terms, “post-policy” means an issue that arises after your title insurance policy takes effect—typically after closing.

Over time, additional title insurance coverage has developed to address risks such as post-policy forgery and other matters important to residential property owners.

Some of these coverages may be available through endorsements, such as the Post-Policy Forgery Endorsement. First American also offers the Eagle Policy®, which provides broader homeowner title insurance coverage that a Standard Owner’s Policy may not include.

Family cooking together at home

What a Standard Owner’s Policy Covers

A Standard Owners’ Policy typically insures against losses resulting from certain title risks existing prior to the policy date, such as:

· Forged documents in prior ownership transfers
· Undisclosed heirs claiming ownership rights
· Certain unknown liens against the property
· Defective recording of documents in the public records

This coverage helps protect your ownership rights if an undiscovered issue from the past surfaces after you purchase the home.

However, a Standard Owners’ Policy generally focuses on past issues affecting title or ownership and provides more limited coverage for certain matters that may arise after the policy date.

Family cooking together at home

Additional Post-Policy Forgery Coverage

Forgery, identity theft, and impersonation remain significant and increasing sources of title risk. Homeowners may unknowingly face title problems caused by forged deeds, impersonation, or unauthorized transfers that surface after purchase.

In certain states where the Eagle Policy® is not available, post-policy forgery coverage may be available through Post-Policy Forgery Endorsements.

These endorsements expand coverage to address certain post-policy forgery risks, including situations where:

· A forged deed or mortgage is recorded against the property
· Someone attempts to improperly transfer ownership

The Post Policy Forgery Endorsement is available in certain states either with a new owner’s policy at the time the homebuyer purchases the property or after closing as an endorsement to an existing owner’s policy, following a title search and review of documents recorded in the chain of title after the date of the original policy.

Family cooking together at home

The most comprehensive coverage: The Eagle Policy®

For homeowners seeking the most comprehensive level of coverage, First American offers
the Eagle Policy®. The Eagle Policy® generally includes the core coverage of a Standard Owner’s Policy
while also adding enhanced coverage related to:

Post-Policy Forgery

Forged documents recorded after the policy date that affect ownership of the property

Building Permit and Zoning Violations*

Problems caused by prior work that did not have the required permits or approvals

Post-Policy Encroachment by Neighbors

A neighboring structure or improvement, other than boundary walls or fences, extends onto your property after the policy date

Violation of restrictive covenants

Forced removal or remedy due to violation of recorded restrictions that apply to the land

Vehicular Access

Access to and from the property by vehicle

Subdivision violations

Issues caused by the property not complying with certain subdivision requirements or laws

How Do Policy Types Compare?

Because it provides broader insurance across key areas, the Eagle Policy® is designed to offer the most comprehensive coverage available.

Here’s how a Standard Owner’s Policy and Eagle Policy® generally compare:

Coverage Against Standard Owner’s Policy Eagle Policy®
Someone else owning an interest in your title
A document is not properly signed
Defective recording of any document
Existing defect, lien or encumbrance not shown in the policy
Title is unmarketable
Forced removal or remedy of an existing structure (other than boundary walls or fences) because it was built without a proper building permit*
Forced removal or remedy of an existing structure due to an existing violation of a zoning law or regulation*
Lack of vehicular access to and from the property
Forced removal or correction due to existing covenant violations**
Encroachment of improvements onto easements and setbacks***
Unable to obtain a building permit due to an existing violation of a subdivision law*
Land cannot be used as a single-family residence because the use violates an existing zoning law or regulation
Standard Owner’s Policy
Someone else owning an interest in your title
A document is not properly signed
Defective recording of any document
Existing defect, lien or encumbrance not shown in the policy
Title is unmarketable
Forced removal or remedy of an existing structure due to an existing violation of a zoning law or regulation*
Forced removal or remedy of an existing structure due to an existing violation of a proper building permit*
Lack of vehicular access to and from the property
Forced removal or correction due to existing covenant violations**
Encroachment of improvements onto easements and setbacks***
Unable to obtain a building permit due to an existing violation of a subdivision law*
Land cannot be used as a single-family residence because the use violates an existing zoning law or regulation
Eagle Policy®
Someone else owning an interest in your title
A document is not properly signed
Defective recording of any document
Existing defect, lien or encumbrance not shown in the policy
Title is unmarketable
Forced removal or remedy of an existing structure due to an existing violation of a zoning law or regulation*
Forced removal or remedy of an existing structure due to an existing violation of a proper building permit*
Lack of vehicular access to and from the property
Forced removal or correction due to existing covenant violations**
Encroachment of improvements onto easements and setbacks***
Unable to obtain a building permit due to an existing violation of a subdivision law*
Land cannot be used as a single-family residence because the use violates an existing zoning law or regulation

Post-Policy Coverage With an Eagle Policy®:

An Eagle Policy® also applies coverage to certain events that first occur after the policy date, including:

Coverage Against Standard Owner’s Policy Eagle Policy®
Post-policy forgery
Post policy damage from extraction of minerals or water
Post-policy adverse possession
Post-policy prescriptive easement
Post policy inflation coverage with automatic increase in value up to 150% over five years
Post-policy encroachments by neighbors*
Standard Owner’s Policy
Post-policy forgery
Post policy damage from extraction of minerals or water
Post-policy adverse possession
Post-policy prescriptive easement
Post policy inflation coverage with automatic increase in value up to 150% over five years
Post-policy encroachments by neighbors*
Eagle Policy®
Post-policy forgery
Post policy damage from extraction of minerals or water
Post-policy adverse possession
Post-policy prescriptive easement
Post policy inflation coverage with automatic increase in value up to 150% over five years
Post-policy encroachments by neighbors*

* Deductible and maximum limits apply. Coverage may vary based on an individual policy.
**With limits for maintenance and environmental obligations.
***Excludes boundary walls and fences in some cases.

Why Some Buyers Choose Enhanced Coverage

Many homeowners choose enhanced coverage because their home represents:

Their largest financial investment

A long-term asset

A place where they plan to live for many years

For these buyers, the additional coverage offered by an enhanced policy can provide greater confidence that their ownership rights remain protected.

The Eagle Policy® was designed to address this need by offering the highest level of homeowner title insurance coverage available through First American.

Choosing the Right Coverage for You

Every buyer’s situation is different.

Some homeowners are comfortable with the coverage offered by a Standard Owner’s Policy. Others prefer additional coverage through endorsements or enhanced policies.

What matters most is understanding the differences before you make your decision.

Taking time to review your options can help ensure your coverage aligns with the level of protection you want for your home.

Homeowner reviewing title insurance coverage options

Learn more about title protection and the Eagle Policy®:

Do Title Risks End at Closing?
What Is an Eagle Policy®?

1 All references to the Standard Owner’s Policy are to the 2021 ALTA Owner’s Policy of Title Insurance.

2 All references to the Eagle Policy® are to the 2021 ALTA Homeowner’s Policy of Title Insurance.

Disclaimer:
As with any insurance contract, the insuring provisions express the coverage afforded by the title insurance policy and there are exceptions, exclusions and conditions to coverage that limit or narrow the coverage afforded by the policy. Also, some coverage may not be available in a particular area or transaction due to legal, regulatory, or underwriting considerations. Please contact a First American representative for further information. The services described above are typical basic services. The services provided to you may be different due to the specifics of your transaction or the location of the real property involved.