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Legal Research Library   >   TIRSA Owner's Extended...

TIRSA Owner's Extended
Protection Policy
By Timothy Ring, Branch Counsel

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As you may be aware, a new form of Owner's Title Insurance Policy has been approved for use in New York State. This form of policy, referred to as the TIRSA Owner's Extended Protection Policy ("TOEPP"), is intended as on option to the existing Owner's Policy rather than a replacement.

Some of the additional coverages contained in the TOEPP policy may be especially interesting to builders.

Please note that TOEPP is available only for the protection of natural persons who purchase 1 to 4 family residences in the State of New York. The changes in the coverage afforded under TOEPP that you should be aware of are as follows:

1. The amount of the insurance set forth in Schedule A of the policy will automatically increase by 10% for the first five years after the date of the policy. The change will be effective on the Policy's anniversary date..
2. The Policy will protect against actual loss sustained by the Insured's inability to use the land because it's use as a single-family residence violates a zoning law or regulation. Limited zoning and building coverage provided for in the policy is subject to a schedule of deductible amounts and maximum dollar liabilities, which are set forth in Schedule A of the policy. There are four relevant provisions with which you will want to be familiar:
   
   1. Subdivision Law Violation - the Insured is protected against actual loss by reason of a violation of a subdivision law or regulation, existing as of the date of the policy which
      1. prevents the insured from obtaining a building permit, or
      2. forces the correction or removal of the violation, or
      3. because of said violation, someone else has a legal right to and does refuse to perform a contract of sale, or to lease or make a mortgage on the land.
         The deductible amount is $2,000; the maximum liability is $10,000
   2. Building Permit â the Insured is protected against actual loss arising from the forced removal of any structures, other than boundary walls and fences, because they were built without obtaining a building permit. The deductible amount is $4,000; the maximum liability is $25,000
   3. Zoning â the Insured is protected against actual loss by reason of the forced removal of structures, other than boundary walls and fences, because they violate an existing zoning law or regulation. The deductible amount is $4,000; the maximum liability is $25,000.
   4. Encroachment of Boundary Walls or Fences â the Insured is protected against actual loss by reason of the forced removal of structures , existing at the date of policy, because they encroach onto a neighbor's land The deductible amount is $1,500; the maximum liability is $5,000.00.
3. TOEPP also provides additional coverage for certain post-policy matters. In the following circumstances the Insured will be protected against actual loss arising after the date of the policy where someone, other than the Insured
   1. owning an interest in the Insured's land,
   2. having lease, contract or option rights in the Insured's land,
   3. claiming rights in the Insured's land arising out of forgery or impersonation,
   4. having an easement on the Insured's land, or
   5. by reason of a defect in title. Due to the additional coverage provided by the new policy, the TOEPP carries a charge of 120% of the regular owner's rate.

A copy of the new policy form will be made available upon request.

If you have any questions about the TOEPP please do not hesitate to contact me at Chicago Title in White Plains. My number is 914-684-3600.

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