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Title Insurance...With Leather Seats And GPS Equipped!!!

By
Title Insurance with Patriot Land Transfer, Inc.

 My good friend Suzi from Mississippi recently asked me to write a post covering 'Enhanced Coverage Title Insurance'...she used the term "EAGLE POLICY" which specifically refers to a product offered by large underwriter First American Title Insurance Company, FANTIC. I am not an agent for FANTIC, therefore I do not speak for them!

Let me lay some groundwork first!

 ALTA, The American Land Title Association, is a 'national' organization which is more or less the unofficial voice of the title insurance industry...they attempt to make title insurance uniformly understandable nationally no matter in what state a property is located!

Keeping in mind the 'local' aspect of real estate...and its state by state regulation by respective insurance commissions or other state governmental agencies...Speaking about title insurance in ways that can be applied nationally and uniformly is tricky and almost impossible! Even though there are tremendous similarities state to state, there are likewise significant differences which make any treatise on the subject challenging if not impossible...so I will attempt to address these matters generally and let the hearers and consumers draw their own conclusions! 

Having said that, 'The Eagle Policy' was FANTIC's attempt to 'go beyond' standard coverages as approved for use nationally by ALTA! Justifiably or not, the 'Eagle' product is part enhancement of coverage and part 'marketing ploy' to increase revenues!!!

The cost for a typical 'enhanced coverage policy' in Pennsylvania is approximately 10% higher than a standard policy and about $50.00 to $100.00 higher for endorsement coverages...in plain speak, on a $300,000.00 basic rate policy in PA, the charge would be an additional $185.88, plus $50.00 over the normal endorsements charge for typical lenders policies or $200.00...making the total out of pocket 'additional' expense to the consumer around $235.88 higher than traditional coverage on a $300,000.00 transaction with both owner's policy and lender's policy to be issued! Of course on cash transactions there would only be the $185.88 difference in costs!

Hope you're still with me!

 At this point I need to make a kind of disclaimer...it would be a great idea and my suggestion to obtain specific information on any title insurance products directly from an agent for that particular Title Company...That way you're sure you're comparing apples to apples!!! And your getting it right from the underwriter's mouth!

Now, let's move on to what the coverages are! Again, I will address 'generically' an 'enhanced title policy' such as I myself am familiar with...keeping in mind these will differ somewhat from Title Insurer to Title Insurer and state to state.

Over and above a standard ALTA owners policy, a typical enhanced coverage policy will add 25 to 30 'covered risks'! A brief outline follows!!!

 

Our basic ALTA coverage protects against:


• Someone claiming an ownership interest in
your title.
• Leases, contracts or options affecting your
title.
• Someone claiming to have rights affecting
your title due to forgery or impersonation.
• Someone having a right to limit your use
of the land.
• Unmarketability of your title.
• A defective title.

 


In addition to the coverage provided in the
traditional ALTA Owner's Policy, an enhanced coverage policy
offers new and expanded coverages ***. You can purchase
coverage against losses caused by:


• Zoning violations.
• Subdivision law violations.
• Improvements that encroach into an
easement.
• Building permit violations.
• Covenants, conditions and restrictions.
• Lack of vehicular and pedestrian access.
• Supplemental assessments arising as a result
of construction or transfer prior to the policy
date.
• Damage to your house caused from someone
with easement rights.
• Someone refuses to buy your land because
your neighbors' structures are on your land.
• Your house or lawn and trees are being
damaged by someone with rights to dig a well
or mine.

*** Some coverages are subject to deductibles &
liability caps.
 

 

 This is by no means a comprehensive treatment of this subject, but a mere overview for discussion purposes...consumers interested in additional information should contact the underwriter of their choice, or call us if you would like any copies of any of our brochures explaining these programs in greater detail!!!

So in the end, it is like buying a new car...do you want the stripped down version which will probably get you from point A to point B nicely, or do you want the version with all the bells and whistles...oh yes, and the plush leather seats!!!

                                                               

 

Comments (25)

Barbara Carter
Century 21 Alliance Realty Group - Highland, NY
Serving Your Real Estate Needs in the Hudson Valle
Thanks Fran- This is very informative. Keeping generalized to be relevant in all areas was a challenge- Great Job
May 08, 2008 06:38 AM
Fran Gaspari
Patriot Land Transfer, Inc. - Limerick, PA
"The Title Man" - Title Insurance - PA & NJ

Barbara,

I'm glad some appreciate the 'pains'!!! :) Thanks,   Fran

May 08, 2008 06:43 AM
Jo-Anne Smith
Oakville, ON

Fran,

Thanks for the lesson! I've never understood all of the ins and outs of title insurance and it's nice to see a post now and then that details things out. I imagine the policies offered there are similar to what is offered here in Canada?

jo 

May 08, 2008 09:41 AM
Greg Knowles Santa Barbara Ca.
Fidelity National Title Group-Santa Barbara - Santa Barbara, CA

Fran, job well done. Something worth mentioning for California is that this policy can only be issued on single family 1-4 units and not vacant land. It has also been adopted by the California Land Title Association and is called the ALTA/CLTA Homeowners policy. It is what is standard issue on a residential sale transaction. I wanted to upload a flyer with the comparison information that is applicable in California but the image was just too large. If someone wants a copy just email me.

May 08, 2008 10:45 AM
Brian Schulman
Coldwell Banker Residential Brokerage, Lancaster PA - Lancaster, PA
Lancaster County PA RealEstate Expert 717-951-5552
I guess the bottom line is that it would be a good idea to discuss the differences with a good local title agent.
May 08, 2008 10:50 AM
Fran Gaspari
Patriot Land Transfer, Inc. - Limerick, PA
"The Title Man" - Title Insurance - PA & NJ

Jo: I can't say for sure, but probably, yes!!!

Greg: Good points...Consumers need to realize and appreciate 'significant' regional differences, and always seek out a good 'local' title agent...!!!

Brian: You got it...that is great advice...and make sure they are independent and unaffiliated with any other real estate service provider!!!

Thanks,   Fran

May 08, 2008 12:05 PM
William Feela
WHISPERING PINES REALTY - North Branch, MN
Realtor, Whispering Pines Realty 651-674-5999 No.
Fran...great post....I learn so much from you guys and gals herre on the "RAIN"
May 08, 2008 01:46 PM
Fran Gaspari
Patriot Land Transfer, Inc. - Limerick, PA
"The Title Man" - Title Insurance - PA & NJ

William,

Commenters like you keep us going!!! Thanks,   Fran

May 08, 2008 01:51 PM
Keith Perry
Coldwell Banker - Hiram, GA
REALTOR - West Metro Atlanta
Hi Fran, I am sure you made our friend Suzi happy!! Great post! You can smell the new leather when it comes up :)  (SMELLAR)
May 08, 2008 02:34 PM
Fran Gaspari
Patriot Land Transfer, Inc. - Limerick, PA
"The Title Man" - Title Insurance - PA & NJ

Keith & Robin,

The 'enhanced policy' would probably suit you then!!! :) Thanks,   Fran

May 08, 2008 02:58 PM
Patricia Kennedy
RLAH@Properties - Washington, DC
Home in the Capital

Fran, here in Washington, virtually nobody bothers with building permits, and I often wonder if the title insurance companies have any idea of what they are insuring!

May 10, 2008 03:33 AM
Fran Gaspari
Patriot Land Transfer, Inc. - Limerick, PA
"The Title Man" - Title Insurance - PA & NJ

Patricia,

Keep in mind...normally title insurance does not cover zoning or those type issues...it insures ownership to the ground and whatever is on it...legally or otherwise!!! Thanks,   Fran

P.S. Be sure, the insurers know what they're insuring...question is...does the consumer???

May 10, 2008 06:02 AM
Melissa McPeak-Manager/Specialist New York Property Issues
Hamlet Title Agency, Inc. - Holtsville, NY

Finally!  Someone who can articulate the nuances of policies.  The 'Eagle' sometimes gets interchanged with TOEPP here in NY.  Most companies make the TOEPP standard unless the client or attorney requests them otherwise.  Just another way some agents are bulking their revenue during these times, we suggest that every client have their policy explained.  Our closers are trained to explain the cost breakdown and policy/endorsement coverages.

Thanks for the post

May 15, 2008 10:04 PM
Fran Gaspari
Patriot Land Transfer, Inc. - Limerick, PA
"The Title Man" - Title Insurance - PA & NJ

Melissa,

That's our mantra also...explain, explain, explain!!! Thanks,   Fran

May 16, 2008 12:32 AM
Kathy Torline
ERA Herman Group Real Estate - Colorado Springs, CO
Colorado Springs Real Estate Blog 719-287-1049

Thanks for sharing this -- it's a great, easy to understand, explanation. 

May 16, 2008 12:51 AM
Rob Robinson- Lehigh Valley PA
Bertrum Settlements (Title & Abstract) - Allentown, PA

We offer free undercoating if the consumer wants to buy our vinyl closing pouch as opposed to a manila folder. :^)

 

Excellent Fran.

May 16, 2008 01:24 AM
Fran Gaspari
Patriot Land Transfer, Inc. - Limerick, PA
"The Title Man" - Title Insurance - PA & NJ

Kathy: Glad you liked it!!!

Rob: Don't like the smell of those...even with undercoating...LOL,

Thanks,   Fran

May 16, 2008 01:33 AM
Synergy Real Estate Solutions
Synergy Real Estate Solutions, LLC - Pittsburgh, PA

Fran, great blog! We currently issue the ALTA Eagle, but they are usually only for jumbo loans for "challenged credit" borrowers.

Again, great writing.. Also, is that Citizens Bank Park in the background?

Thanks!

Jason

May 27, 2008 04:29 AM
Fran Gaspari
Patriot Land Transfer, Inc. - Limerick, PA
"The Title Man" - Title Insurance - PA & NJ

Jason,

You got it!!! Home of the Phillies!!! Thanks,   Fran

May 27, 2008 04:46 AM
Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

Thanks for taking the time to explain in detail. Great post.

Jun 20, 2008 11:44 PM