Two common misconceptions when ordering title insurance policies
Apr 24th, 2019 | By FCT
Not everyone is an expert on title insurance, and if you’re not a title insurer, you don’t have to be. Your clients are relying on you to protect them with as much coverage as possible, and you can rely on us to provide it. And we’re not just saying that; we introduced title insurance to Canada and have been in the industry for over 25 years!
Over the years, we’ve noticed a few common misconceptions when ordering title insurance policies, whether residential or commercial, and here are the two main ones.
1. You need all the endorsements
Given the number of transactions that FCT underwrites across the country, we offer a unique advantage in the industry with our experienced underwriters who can guide you through the coverage available for your deals. Based on the information you provide us about your transaction, we’ll add the endorsements that you require. You don’t have to guess what you may need, and you certainly don’t need every endorsement available.
Why not just get all the endorsements to be safe, you may ask? Well, some endorsements have issuing guidelines that require you to provide more information before they are added. If the endorsement is not relevant to the transaction, you may end up wasting time trying to track down the information required and reviewing policy documents that don’t apply to the transaction. This makes a transaction a lot less efficient and doesn’t add any more coverage than you would have already been provided.
Another reason to avoid getting unnecessary endorsements is to avoid potential confusion about your client’s coverage at the time of a claim. Having extra inapplicable endorsements may confuse all parties involved.
2. More paper means more coverage
Policies from different title insurers may look slightly different, but that doesn’t necessarily mean that one offers more coverage than the other. While some insurers have longer policies that include more endorsements, at FCT, we’re all about efficiency. If we see trends or tend to add the same endorsements to certain policies, we may update our policy jacket or consolidate multiple endorsements to include all the relevant coverage in fewer pages.
If you’re ever unsure about the available endorsements or coverage in general, don’t hesitate to reach out to our expert underwriters. You can also share any questions in the comments section below.