What is Additional Boundary & Area Coverage

Absolutely! Here’s the fully revised Texas Homebuyer FAQ including cost, payment options, coverage, and claims process all in one place:

Texas Homebuyer FAQ: Additional Boundary & Area Coverage

1. What is Additional Boundary & Area Coverage?

It’s an optional enhancement to your title insurance that protects against boundary disputes, encroachments, or easements that may not be covered under standard title insurance.

2. Why do I need it if I already have a survey?

Even with a survey, mistakes can happen, boundaries may shift, or easements may not be recorded. This coverage provides extra legal and financial protection if a dispute arises.

3. How much does this coverage cost in Texas?

The cost for residential properties is typically about 5% of the total title policy premium. While optional, the protection it provides can save buyers or sellers from costly legal disputes. 

4. Who pays for this coverage?

Either the buyer or seller can pay for Additional Boundary & Area Coverage, depending on what is negotiated in the purchase contract.

5. Does it cover fences, driveways, or other structures?

Yes! Area coverage protects improvements that may extend beyond your recorded property lines, such as fences, driveways, sheds, or pools.

6. Does my lender require this coverage?

Not usually. Lenders require standard title insurance, but Additional Boundary & Area Coverage is optional. Many buyers choose it for extra peace of mind.

7. Can it prevent boundary disputes entirely?

No coverage can completely prevent disputes, but this coverage protects you financially and legally if a boundary issue or encroachment claim occurs.

8. What legal and financial protection does it provide?

Additional Boundary & Area Coverage helps protect buyers (or sellers) if a dispute arises over property boundaries, encroachments, or easements. Specifically, it can:

• Pay legal fees if a neighbor challenges your property line or claims an encroachment.

• Cover financial losses if you are forced to remove or modify structures that cross property lines.

• Defend against claims involving easements or other recorded or unrecorded rights that affect your property’s use.

This coverage reduces out-of-pocket costs and liability related to boundary or encroachment issues.

9. Who do I contact if I need to file a claim?

If an issue arises that may be covered under this policy:

1. Contact your title insurance company immediately—they issued the policy and will guide you through the claims process.

2. Notify your real estate agent to provide surveys, disclosures, or documentation.

3. Keep records of any surveys, title commitments, or correspondence related to the dispute.

Your title company will assign a claims representative or attorney to help resolve the issue according to your policy coverage.

10. When should I order this coverage?

It’s best to order it when you purchase title insurance, so your investment is protected from day one. 

11. Who can help me decide if I need it?

Your real estate agent, title company, or attorney can explain your options and help determine if Additional Boundary & Area Coverage is right for your property.

Contact Holly Mathieson

Have questions about surveys, title coverage, or buying a home in Texas? Contact Holly Mathieson at 936-697-9277 or holly@theeaglenexus.com for expert guidance and personalized advice.