Today I’m happy to be here with Dave Schreiber with Nebraska Title Company. Nebraska Title Company is the company that our agents trust, they do amazing work for us and that’s why Dave is here today to educate you what title insurance is. Most of us, even realtors, we call things like this Junk Fees…But they’re not junk! That’s why Dave is here to explain what it is and how it protects us.
Dave: Exactly! While most people will never actually use their title insurance, it’s rare, but when it does get used it can generate a claim of $100,000 to $200,000, basically the value of your house!
Lisa: That’s a lot of money!
Dave: That’s a lot of money! Your home is the biggest investment that you’ll make. And to not have it insured that you actually own the property, and somebody can challenge the title to your property, is playing roulette.
Lisa: Yeah, absolutely, you’ve phrased that very well. Somebody can’t make claim to your title is really what you’re insuring.
Dave: Exactly, that is primarily what it is. You’ll see a situation happen when 10 years ago, somebody got married all of a sudden their spouse is interested in the house but when they sell the house, they didn’t have him sign off on it, and their spouse could show up and try to claim an interest in the house. That could be defeated in court, if you don’t have title insurance, you’re going to have to pay the lawyer thousands of dollars to defeat that claim, instead of having the title insurance company pay for it.
One thing to remember with title insurance is that you pay that fee once, if you own the house for 30 years, you are insured for the entire 30 years.
Lisa: That’s good to know. Some of the things I’ve seen, it’s common for contractors to place liens on a house.
Lisa: Title commitments are something that we receive as agents, and our people actually read those! But there are a lot of reasons why you need title insurance.
Dave: You could liens against the house that no one knew about, a bank that forgot to release deed of trust from 20 years ago. There is a lot that can go wrong.
Lisa: That’s helpful. Now when a person is buying a house, on the Omaha Area Board of Realtors Uniform Purchase Agreement, a customer is going to see a choice between basic title insurance and expanded title insurance, can you summarize the difference?
Dave: With the basic insurance you’re getting covered for 10 different kinds of risk. With the expanded you’re getting coverage for 32 types of risk. Under the basic policy, it generally covers things that happened before you bought your house, things from the past. Under the expanded coverage, it will actually cover things that happen after you buy the house, that’s probably the biggest difference.
Lisa: I love insurance, I think for a few bucks more just spend the money and get the coverage. I love what insurance can cover and do in case of an emergency.
And people do have their choice of title companies to work for, they don’t have to go with who their agent recommends. So why would someone choose Nebraska Title over a competitor?
Dave: One thing people don’t have to worry about is the price, shopping around for a price. The prices are all regulated by the Department of Insurance, we all charge the same and have the same policies. What it comes down to and what I like about Nebraska Title, it’s the service. The people who handle most of the truncations are the closers and they have a ton of experience. And they treat the transactions the way they’d like to be treated and how they’d like it to be handled for them.
Lisa: I agree, and there are certain title companies that I’ve worked with that I get nervous that things are going to close on time and with Nebraska Title Company I don’t feel like I have to worry about that. I know everyone involved are going to hit their deadline. I appreciate your guys’ work!
Check out the video blog here: https://youtu.be/78Hw5uoHhys