First Nebraska Title

Most buyers and in many cases realtors aren’t aware that there are choices when it comes to deciding what type of title insurance coverage is best for buyers of improved one-to-four family residences.

Title insurance has evolved and the real estate market, particularly realtors need to be aware of the "Homeowners Policy of Title Insurance" offered by First Nebraska Title.

As a realtor, some would suggest  you have a duty to disclose to the home buyer the availability of title insurance that shifts more of the risk of the transaction to the title insurer and contains coverage’s and additional benefits that are not included under the “Basic” title insurance policy.

The Homeowner’s Policy is designed for that purpose and provides the homeowner with optimum title insurance and ultimately more peace of mind knowing they have the best title policy available.

For example, under basic title insurance coverage what happens to the homeowner if:

1)    After they purchase their home they are forced to correct or remove an existing violation of a protective covenant;

2)    Because of an existing violation of a subdivision law or regulation affecting your home you are unable to obtain a building permit;

3)    You are forced to remove or remedy your existing structure because any portion was built without obtaining a building permit;

4)    You are forced to remove your existing structure because they encroach onto your neighbor’s land;

5)    For estate planning purposes you transfer ownership of your home to a designated trustee under a revocable trust you have set up.

Under each of these scenarios, coverage for these types of loss would not be available and in the case of the transfer to the irrevocable trust all coverage would be lost under a “Basic” title insurance policy.

With the Homeowner’s Policy of Title Insurance the homeowner is protected against these types of losses. For example it provides coverage for;

1)    Restrictive covenant violations protecting against loss of title to the property because of a violation of a restrictive covenant;

2)    Building permit violations covering loss because of the forced removal or need to remedy an existing structure (except boundary walls and fences) because it was built without a building permit;

3)    Zoning law and encroachment protection if the homeowner cannot use the single-family residence due to the way the land is zoned or forced to remove an existing structure because it encroaches on a neighbor’s land.

Another attractive feature of the Homeowners Policy of Title Insurance is it covers the homeowner forever, even if they no longer have the title. For example, it  provides for uninterrupted coverage allowing the homeowner to not only transfer title to their home into a trust after the policy date, but also provides continuous coverage to anyone who inherits title because of the homeowner’s death and the spouse who receives title after a dissolution of marriage.

The Homeowner’s Policy of Title Insurance costs more because it is superior to the “Basic” title policy.  Currently the charge is on average approximately 25% higher than the “Basic” owner’s premium currently approved for Nebraska.

However, the Homeowners Basic Policy has “Value-Added Protection”. The coverage under a “Basic” policy doesn’t increase as the value of the home increase.  Not so with the Homeowner’s Policy. The policy amount with a Homeowner’s Policy automatically increases by 10 percent per year for five years, up to 150% over the original policy amount. This automatic increase in coverage is included at no extra cost.

Protect yourself as a realtor while protecting your clients with the best title insurance product available. At First Nebraska Title we can provide you and your clients with information about the Homeowner’s Policy coverage in simple, easy-to-understand language. Contact us and we would be happy to explain the benefits in using First Nebraska Title and the benefit of choosing the Homeowner’s Policy of Title Insurance.

In addition, if you want a quote on the cost of a Homeowner’s Policy versus Basic coverage then go to our Calculator found at our website firstnebraskatitle.com and go to our “GFE Calculator, then chose the amount of coverage you need. It’s that simple.