Is Title Insurance Worth Looking Into?

The traditional insurance business revolves around security against any future mishaps. But Title Insurance focuses on protecting you from claims that may arise from what happened in the past. In this blog, we’ll explore the complexities and value of Title Insurance policy.  

Title Insurance in hindsight

The need for Title Insurance usually arises when a person sues another over homeownership. So how can an insurance agent help people overcome such issues?

You can reach out to carriers that write Title Insurance in such cases. These carriers perform background research into properties for any residual issues. Once identified, they’ll work to resolve those problems.

Coverages provided by owner’s Title Insurance

Let’s face it; the credibility of public records is questionable. It is these errors that emerge from public records that transform into a claim. The title examiner will inspect the series of owners through which property has passed. Furthermore, they will also investigate the current allegations against the property. For any claims that surface, it will cover for the damages.

An extended policy can provide you with more exceptional coverages. The coverages include –

  • Encroachments: Border encroachment disputes that arise from claims made by neighbors.
  • Liens: Any unpaid obligations to the creditor, that may result in the property getting seized.
  • Easements: Property rights of someone with interest in property owned by someone else.
  • Defects: Probable threat to an owner’s full right or claim when selling property.
  • Encumbrances: Any claim that may surface by a party who is not the owner.

Is there really a necessity? 

Despite strict regulations, leakages do exist. Due to these leakages, property owners may get the short end of the stick.  

Title Insurance policy is pivotal to avoid unwanted hassles. People want total ownership of the property. In the presence of a lender, an owner’s Title Insurance is mandatory.  

Luckily, it covers both property purchase and legal defense costs. With an extended policy, the insureds can prepare for claims that may arise after property purchase.  

Who needs Title Insurance? 

You might have guessed the answer by now – the owners and the lenders. The owners need security from possible claims. The lenders need protection for their loans.  

Agents can facilitate low-cost policy by getting both the owner’s and lender’s policy together from the same carrier. Furthermore, major carriers provide quotes online. Agents can scour the web to look for the best deals.  

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In a nutshell 

The threats that arise from a property claim demands a win-lose situation. Exposure to such risks is not something that owners want. This simple yet effective value proposition can help agents insure owners.  

Furthermore, agents can pitch extended policies to interested candidates. Additional policies mean defense against further claims, and for the agents – more business.  

You need to be mindful of the pre-existing uncleared issues, though. That should be the top priority when selling the owner’s Title Insurance. The demand for Title Insurance will never exhaust, as there will always be a threat of claims.  

Have you ever sold a Title Insurance to anyone? Let us know in the comments section below!   

Learn how you can flourish as an agent after one call!

Schedule a call right now and learn how you can ease your work, sell more, and increase your profits!