Owner's extended coverage is an upgraded owner's title insurance policy that protects a Colorado homeowner against a broader set of title risks than the standard policy. In addition to the covered items in a standard owner's policy — such as forged deeds, undisclosed heirs, and recording errors — an extended (often issued as an ALTA Homeowner's Policy) adds protection for issues that may not appear in the public record, including certain unrecorded liens, boundary and survey problems, encroachments, and some post-policy events.
What does owner's extended coverage protect against?
A standard owner's policy covers defects that exist in the public record as of the policy date. Extended coverage broadens that in ways that matter most to residential buyers in El Paso County and across Colorado. Common added protections include:
- Unrecorded mechanic's liens (for example, a contractor who worked on the home before closing but recorded a lien afterward)
- Boundary line and survey discrepancies, and encroachments onto or from neighboring property
- Rights of parties in possession not shown by the public record
- Certain easements and access issues not disclosed in recorded documents
- Some covered risks that arise after the policy date, such as forgery affecting your title or a neighbor building an encroaching structure
Standard owner's policy vs. owner's extended coverage
| Protection | Standard Owner's Policy | Owner's Extended Coverage |
|---|---|---|
| Forged deeds, fraud, undisclosed heirs | Yes | Yes |
| Recording and indexing errors in public record | Yes | Yes |
| Liens and encumbrances of record | Yes | Yes |
| Unrecorded mechanic's liens | Generally excepted | Often covered |
| Survey, boundary, and encroachment issues | Generally excepted | Often covered |
| Rights of parties in possession | Generally excepted | Often covered |
| Certain post-policy risks | No | Often covered |
The exact list of covered and excepted items always depends on the specific policy form and the title commitment issued for your property.
How much does extended coverage cost in Colorado?
Extended coverage typically carries an additional premium over the standard owner's rate, and in many cases the title company will require a current survey or an Improvement Location Certificate (ILC) to remove the standard survey exception. Whether the added cost is worthwhile depends on the property — rural parcels, homes with recent construction or remodeling, properties with fence lines that may not match the deed, and unusual lot shapes tend to benefit most.
Do I need owner's extended coverage?
There's no universal answer, but extended coverage is often worth discussing when any of the following apply to your El Paso County or Colorado Springs purchase: the property has had recent work done, the boundaries are uncertain, there's no recent survey, the lot is large or irregular, or you simply want the broadest available protection for what is likely your largest asset. Your title professional can review the title commitment and help you weigh the added premium against the specific risks on your parcel.
Frequently asked questions
Is owner's extended coverage the same as an ALTA Homeowner's Policy?
They're closely related. In Colorado, extended residential protection is frequently delivered through the ALTA Homeowner's Policy of Title Insurance, which bundles many extended-coverage protections into a single form designed for one-to-four-family homes.
Does extended coverage replace the need for a survey?
Not exactly. Extended coverage can insure over certain survey-related risks, but underwriters often still require a current survey or ILC before removing the survey exception. Your title company will tell you what's needed for your property.
Is title insurance required in Colorado?
Lender's title insurance is typically required when you finance a purchase. Owner's title insurance — standard or extended — is optional but strongly recommended, since the lender's policy protects the lender, not you.
Can I add extended coverage after closing?
Owner's coverage is generally chosen at closing based on the title commitment, so it's best to discuss extended coverage before you close. Talk to your title professional early in the transaction.
Have questions about whether extended coverage makes sense for your Colorado Springs or El Paso County purchase? Contact Ben Gosz at Chicago Title of Colorado for a quote or a walkthrough of your title commitment.
This article is for educational purposes only and is not legal advice. Actual coverage is governed by the terms, conditions, and exclusions of the issued policy and is subject to underwriter approval.