Title Insurance - Why You Need To Keep Your Policy

Cindy Kisida from Coastal Properties Group interviews Leah Negri from Platinum National Title to help buyers understand why it is so important to keep your Title Insurance Policy in a safe place. Watch the video below, or read the transcript below.

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Why it is important to keep your title insurance documents

Cindy Kisida. Coastal Properties Group in the Clearwater Beach

I am talking with Leah Negri who is the general manager for Platinum National Title who is our preferred title company in the area because of their expertise and their staff. We had a staff meeting this week at Coastal, and Leah brought up a point about how important it is to retain your current home records for as long as you own the home, and so I'd like for Leah to expand on that information, 'cause I found it very interesting.

Leah Negri with Platinum National Title

I always like to explain to agents and buyers and sellers exactly why it's important to keep your documents for the life that you own the home, and know specifically where those documents are at. So in our industry, when we're going to do the transaction, and you've got a seller who's selling the home, it's really difficult when there is an actual title issue, obviously that's not something we want to happen, but when there is a title issue, and you don't have access to your paperwork from when you purchase the property, or even as you refinance through the years, needing to clear a title issue is of the utmost importance, and having your owners title insurance policy is what protects you from any previous leans or previous judgments or issues from any owner prior to you, and anything reported that might have been missed and sadly things get missed. 

We deal in a world with human people, and so we'll make mistakes. But the owner’s title insurance policy is what covers you for any of those errors that were recorded prior to the recording of your deed. So having that documentation will help alleviate those issues. Now the big one I see is when we have people who are selling their parent's home who have since passed. Suppose they're dealing with a property they don't know anything about, and now there's a major title issue. Thankfully most of our people who have gone through issues with title issues with deceased parents have found their paperwork. Sometimes from 30 years ago. In these cases, it has saved them thousands of dollars by being able to produce that owner's policy and show that hey we have coverage over these issues. So it's just a peace of mind knowing that you have that paperwork, knowing that if something were to come up, you have that documentation. 

Just like any insurance policy, I like to tell people at the closing table, if you don't have it, it doesn't exist. If you die and you've bought life insurance and your family members can't find it, they’re not going to be able to cash in on that policy. It’s the same with an owner’s title insurance policy. You have to keep it. Title companies, by statute, are only required to keep their records for seven years. Also, not every title company is even open for seven years. Some of them are open for a long time, some of them aren't, so you can run into those issues. So it's very important as a new home buyer, and a current home buyer, to find out where that paperwork is. 

Make sure if you just bought a home and you didn't get your owner’s policy at the closing table that you follow up with that title company. Demand that you get that policy. It's very important that you keep those records and make sure that your documents are safe so that you don't have to deal with the unknown when you go to sell your property or when your heirs go to sell your property if you've passed on. It is just so important thing to have the paperwork.

Cindy

Thank you, and we're going to have this continuing series about title insurance. So look forward to the next episode, thank you.



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