Title Insurance

Real estate transactions have a way of creating a lot of paperwork and over time, that paperwork can really start to add up. It's not possible in all cases to keep accurate count on how many times a piece of property has changed hands; if you live in an older part of a city that has been established for generations, the title to your property may go back generations and the land even further than that.

Think of the changing of title in real estate as one long chain. As with any long chain, there are numerous points along the way where there may be weak spots. In the case of real estate, though, a weak spot won't lead to a broken chain, it will lead to a lot of legal work. This legal work will often mean large fees for the defendant (usually the current title owner) as well as possible damages paid out.

These weak links in the real estate title chain occur when something in the past happened to cast doubt upon the true ownership of the title. The current holder of the property may not even have been alive (her grandparents may not have even been alive!) when the defect in question occurred, yet it will be the current owner who is paying the fees to defend her title.

Title insurance is a way of insuring that the fees for research, settlement, and legal fees are paid not by the current title holder but by the insurance company. It is a very handy thing to have when there is a dispute because researching that kind of claim can take years and a lot of hours put in, and usually a claimant is not after the property but after a dollar amount on the current worth.

With that said, it's easy to see why people would want to have title insurance, but does everyone actually need it? Well, statistics certainly don't support it. Title insurance companies have the best return for their shareholders of any of the insurance specialists, spending only about 4.5% of their total premium contributions in actual claims. That's a very, very low figure, one that indicates that title issues do not spring up very often. However, it is worth the price of title insurance if one holds title in a country such as the United States, which uses a documentation, rather than a registration, system for title holders, a system which has several inherent flaws.

If you hold title on land in parts of the industrialized world other than the United States, you are even less likely to need title insurance. Still, if the land or property that you are purchasing does come with a chance of contestation (in Canada land claimed by various native groups is a good example) then you might want to consider taking out a title insurance policy.

Article Source: http://www.insurancearticle.com

Flooding - Keeping thoses gutters and drains clear

Insurance claims from damage from flooding, cold and stormy conditions during the summer months have soared. 60% of current home insurance claims are related to bad weather conditions. Home owners are being warned that not only do they need to prepare their home by checking trees, gutters, drains and roofs, but they must make sure they are in a position to cover any damages by being adequately insured.

The overwhelming majority of household policies provide cover in respect of flood, however, it is necessary to check your policy to make sure this is so. Simple steps can be taken to prepare a property for the worst that the weather can bring. Built up leaves, seeds, dirt and other debris that has run down your roof and into your gutter can lead to a blockage in the system which in turn can lead to major problems. The good news is most of these blockages can be easily cleared, but it must be done often, ideally at the beginning of winter to clear leaves that have fallen during autumn and summer since high rainfall appears to be on the increase in most parts of the UK.

No matter what type of guttering you have, the troughs will need clearing. It is not a particularly difficult job, but it is essential if you wish to avoid problems further down the line such as water damage and serious outbreaks of dry rot.

Article Source: http://www.insurancearticle.com

Landlord Insurance - Top Tips For Property Owners

If you are a landlord or property owner you will no doubt face many challenges when it comes to letting your property or properties. From finding the right tenants (or letting agency) to dealing with tenants queries and a multitude of other issues your time is often at a premium.

Here are some tips for landlords along with some answers that many property owners ask on a regular basis about how best you can make sure your properties are protected.

What can I do to protect my property?

Insurance is available so that in the event of a loss (by an insured event) you will be protected and covered.

In order to reduce the chances of a loss you can however take certain steps to help. These include:

1. Make your property more secure by installing deadlocks on doors and locks on the windows.
2. Install an alarm system. Many insurers will offer a lower premium because you have lowered the risk of loss through theft. For certain postal areas a minimum level of security will be required.
3. Remove potential fire hazards from around the outside of the house as well as inside, particularly around the kitchen.
4. Make sure you have working smoke detectors and a suitable fire extinguisher. Put the extinguisher somewhere handy and make sure members of your household know how to use it.

What should I insure my contents for?

As a landlord, it is quite possible that the property that you are letting contains contents that you own. It is important to note these contents and ensure that you have provided adequate cover for them in your insurance policy. It might be worth doing a room by room inventory and working exactly what level of cover you require. Again though if you are in any doubt, just ask.

How can landlords minimize financial losses related to repairs and maintenance?

You can avoid many problems by maintaining the property in excellent condition. Here's how:

1. Use a written checklist to inspect the premises and fix any problems before new tenants move in.
2. Encourage tenants to immediately report safety or security problems such as plumbing, heating, broken doors or steps; whether in the tenants unit or in common areas such as hallways and garages.
3. Keep a written log of all tenant complaints and repair requests with details as to how and when problems were fixed.
4. Handle urgent repairs as soon as possible and take care of any safety issues within 24 hours. Keep tenants informed as to when and how the repairs will be made.
5. Twice a year, give tenants a checklist on which to report potential safety hazards or maintenance problems that might have been overlooked.

Use the same checklist to personally inspect all rental units once a year.

Also, your commitment to repair and maintenance procedures should be clearly set out in the lease or rental agreement.

Owning a property or a portfolio of properties can be very rewarding so follow these simple tips and make sure you and your properties are protected at all times.

Article Source: http://www.insurancearticle.com