Monday, November 03, 2008

your choice as a consumer

If you decide to buy title insurance, and I strongly recommend that you do, select the provider carefully.

First, make certain that the title insurer is actully performing the title examination themselves and not farming it out to a computer or a vendor clerk will likely do a cursory review or no review.

It is important to realize that most of the premium you pay for title insurance is for the pre-insurance examination of title, the purpose of which is to find and eliminate reasonable risk of claims.

Why care about the risk of claim, if you are insured?  Well, the process of making a claim isn't pleasant and in the end you might end up with some money and not the home that you love.

Second, carefully review the work product of the title insurer before you close.  That means get the title commitment and read it.  Look carefully at the exceptions to coverage and understand what you are buying before you close.

If you are dealing with an expert title insurer, you'll get clear information.  If you are dealing with someone who got into the business cause they thought it was a gold mine and not a profession, you'll get wishy washy answers.  Use your intuition and select your provider very carefully.  The gold miners will skip all the work steps and issue an empty title policy void of examination and full of widely generalized exceptions that boot out most, if not all claims.

Be a careful shopper.

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