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Why Title Insurance?

“Why do I need title insurance?” is a common question every realtor will get, if you haven’t already. It’s also one that is important to give your clients peace of mind as they purchase a new home. We’re always eager to explain what we do to real estate agents, property investors, and their clients. We believe in title insurance because we’ve seen what can happen without it! While title insurance might be one of the last things your client thinks about, it’s important that they know all the benefits as well as the need. But let’s just put it bluntly- real estate agents are incredibly busy and have to explain countless parts of the home buying process, from local school systems to budgeting for a down payment. Do you know how to explain title insurance to your clients? While it’s not that different from car or health insurance, it’s just a whole lot more specific. Take these quick bullet points to your clients before the closing.

Basic Overview of Title Insurance

Unlike other insurances, your clients will pay only once at the closing and be covered as long as they own the home. A lender will require you to purchase title insurance to secure their investment. The title insurance company will check to see that there are no errors in the records, deeds, and financials of the property you’re purchasing. This makes sure that the seller can sell you the property without any unforeseen catches. Then, after underwriting, you’ll be covered against anyone who disputes your title. The insurer will pay your legal fees and cover any lost equity should you lose. If you have a client moving from out of state, make sure they understand the regulations for title insurance in Tennessee versus the state they are leaving.

The Type of Coverage Your Client Needs

The basic title insurance will cover your remaining mortgage should you lose it due to fraud, forgery, and spousal claims. An owner’s policy will cover the full purchase price of the home. Additional coverage is always available to cover home construction that may violate a neighborhood’s restriction, or to hedge against inflation, but it will increase the cost of your policy. Make sure your clients understand all the options available to them so they can make the best decision for their needs.

Why We’re the Right Choice!

Is there any reason not to buy title insurance? In the rare instance your client is buying co-op housing, they can opt out of the title insurance. Otherwise, a lender will require them to have it. But, when they understand the other benefits of the coverage, they’ll immediately see the need to protect their investment. Most clients will take your recommendation or the lender’s preferred insurer. We’ve invested tens of thousands of dollars into providing the highest value of coverage while placing massive investments into protecting our clients’ financial security. Our ALTA certification means that we lead the industry in training and effectiveness and we have the local experience and competitive rates to serve you and your clients well!

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