Escrow & Title

A Mississippi buyer's lender requires title insurance with a 'ALTA Homeowner's Policy.' This policy provides broader coverage than a standard ALTA Loan Policy because it:

ACovers the lender's interest only
BProvides additional coverage for the owner including certain post-policy risks like zoning violations, building permit issues, forgery, and enhanced coverage for encroachments✓ Correct
CCosts less than a standard policy
DOnly covers defects in the deed

Explanation

The ALTA Homeowner's Policy (introduced in 1998) provides broader coverage than the standard ALTA Owner's Policy, including coverages for: certain post-policy risks (forgery after policy date), zoning issues, building permit violations, encroachments discovered after purchase, and other risks. It is the premium residential owner's policy.

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