TIRSA Owner’s Extended Protection Policy (TOEPP)

The TIRSA Owner's Extended Protection Policy (TOEPP) in New York State is an important and complex insurance policy that provides additional protection for property owners purchasing one to four family residences, including condominiums. TOEPP is designed to safeguard the interests of property owners by offering an extended level of coverage against various title-related risks, ultimately ensuring a smooth and secure real estate transaction process.

To understand TOEPP better, let's break down the key components and concepts related to this policy, explaining each aspect in simple terms:

1. Title Insurance Basics: Before diving into TOEPP, it's essential to grasp the concept of title insurance. When you purchase real estate, you're not only buying the physical property but also the legal rights associated with it. These rights are recorded in a document called a "title." Title insurance is a form of indemnity insurance that protects property owners and lenders from financial losses resulting from defects, disputes, or issues related to the property's title. It's different from other types of insurance because it provides coverage for past events rather than future ones.
2. Standard Title Insurance Policies: In New York, as in many other states, there are standard title insurance policies that provide basic protection for property owners and lenders. These standard policies protect against issues such as:

•  Forgeries and fraud in the transfer of the title.
•  Clerical errors or omissions in public records.
•  Unrecorded liens or encumbrances.
•  Invalid deeds or conveyances.
•  Incompetence or incapacity of parties involved in the title transfer.

3. Title Insurance in Real Estate Transactions: Title insurance is typically purchased during a real estate transaction. When a property is bought or refinanced, a title search is conducted to determine the history of the property's ownership and any potential issues with the title. This search involves examining public records, such as deeds, mortgages, tax records, and court documents. The goal is to ensure that the title may be insured "free and clear" and that the property can be legally transferred.
4. TOEPP - A Comprehensive Title Insurance Policy: The TIRSA Owner's Extended Protection Policy (TOEPP) goes beyond the coverage provided by standard title insurance policies. It is a comprehensive policy that offers an extended level of protection to both property owners and lenders. TOEPP is often chosen when the parties involved in the qualifying real estate transaction want an extra layer of security.
5. Specific Risks Covered by TOEPP: TOEPP may offer extended protection against a wide range of title-related risks, including but not limited to:

•  Post-policy Forgery
•  Post-policy Encroachments
•  Post-policy Adverse Possession
•  Coverage extended to homeowner when someone claims to have the insured’s title arising out of someone else’s continued use and occupancy
•  Post-Policy Easement by Prescription
•  Coverage if another claims right to use a part of the insured’s land as an easement because of continuous use over time
•  Building Permit and Zoning Violation
•  Coverage for losses up to $25,000, after a small deductible, for building permit violations and forced remediation of zoning violations, and up to the full policy amount for forced removal of structures due to zoning violations
• Expanded Access
• Expanded to include both vehicular and pedestrian access to and from land, based upon legal right
•  Encroachment of Improvements onto Easements and Set-backs
•  Subdivision Violation
•  Homeowners are covered up to $10,000, after a small deductible, for protection against subdivision violations prior to purchase
•  Restrictive Covenant Violations
•  Coverage provided for violations of restrictive covenants, occurring before homeowner acquired land if the homeowner is forced to correct or remove the violation or if the homeowner’s title is lost or taken because of the violation
•  Structural Damage for Mineral Abstraction or Easement Use
•  Encroachment of Boundary Walls and Fences
•  Protection of up to $5,000, after a small deductible, for encroachments onto a neighbor’s land, onto an easement, • or over a building set-back line

6. Cost of TOEPP: The cost of TOEPP is 120% of the standard Owner’s Policy rate. as in the standard owners policy, the location, and other factors. While it may seem like an additional expense, TOEPP can potentially save property owners and lenders a substantial amount of money in the long run by protecting them from unforeseen title issues.
7. The Role of TIRSA: TIRSA, which stands for the Title Insurance Rate Service Association, is the organization responsible for regulating title insurance rates and rules in New York State. TIRSA plays a crucial role in overseeing the title insurance industry, ensuring that it operates fairly and transparently. They establish the rates for title insurance premiums and develop standardized forms, including those for TOEPP.

In summary, the TIRSA Owner's Extended Protection Policy (TOEPP) in New York State is a comprehensive form of title insurance that goes beyond the coverage provided by standard policies. It offers an extended level of protection to property owners , safeguarding their interests against various title-related risks While it comes at a higher premium, the protection it offers can potentially save property owners from significant financial losses in the event of unforeseen title problems.

Understanding the benefits of TOEPP and working with the Home Abstract Team can help ensure a secure and smooth closing. 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 the Home Team 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.

Eagle Owner's Policy benefits you won't get with a Standard ALTA Owner's Policy
First American Title Insurance Company’s EAGLE Owner’s Policy provides expanded title coverage for owners of one-to- four family residences, including condominiums. Coverages included in the EAGLE Owner’s Policy offer the highest levels of protection available to homeowners.

• Post-policy Forgery
• Post-policy Encroachments
• Post-policy Adverse Possession
 o Coverage extended to homeowner when someone claims to have the insured’s title arising out of someone else’s continued use and occupancy
• Post-Policy Easement by Prescription
o Coverage if another claims right to use a part of the insured’s land as an easement because of continuous use over time
• Building Permit and Zoning Violation
o Coverage for losses up to $25,000, after a small deductible, for building permit violations and forced remediation of zoning violations, and up to the full policy amount for forced removal of structures due to zoning violations
• Expanded Access
o Expanded to include both vehicular and pedestrian access to and from land, based upon legal right
• Encroachment of Improvements onto Easements and  Set-backs
• Subdivision Violation
o Homeowners are covered up to $10,000, after a small deductible, for protection against subdivision violations prior to purchase
• Restrictive Covenant Violations
o Coverage provided for violations of restrictive covenants, occurring before homeowner acquired land if the homeowner is forced to correct or remove the violation or if the homeowner’s title is lost or taken because of the violation
• Structural Damage for Mineral Abstraction or Easement Use
• Encroachment of Boundary Walls and Fences
o Protection of up to $5,000, after a small deductible, for encroachments onto a neighbor’s land, onto an easement, or over a building set-back line

See Additional Protection The Toepp Can Provide 

Information set forth above is made for information only and is not made with the intention of providing definitive representations of coverage. 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 the Home Abstract Team 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.