Page 16 - Jonathan Gotcher Buyers Guide

T Ti it tl le e I In ns su ur ra an nc ce e P Pr re em mi iu um ms s

Title insurance is unique in the world of insurance for unlike auto, hazard or life insurance that
operates under “risk assumption” (assuming something might happen), title insurance operates for “risk
elimination” (eliminating the possibility of something happening). Title examiners are trained to analyze
records for information which affects title to real property including, but not limited to, identifying the rights
which others may have in your property; encumbrances against your property (liens, judgments or other
legal actions) or rights of way. Prior to transferring title from a seller to a purchaser, Pioneer Title will
“clear” those encumbrances you do not wish to assume, like the seller’s mortgage for instance.

Other insurance rates are based on actuarial study of anticipated losses and premiums are pooled with
the assumption that a given number of claims will likely be made. Title insurance premiums differ as
they are paid to identify and eliminate potential claims and risks so they won’t happen. In addition,
unlike other insurance premiums which are paid annually for regular renewal, title insurance is a one time
premium and is far less costly than other forms of insurance, considering the investment you protect is
your home and the land underneath.

Although the goal of a title company is to do such a thorough search and evaluation that no claim will
ever arise, its an impossible task as long as we live in an imperfect world with human error and
changing court interpretation which make 100% risk elimination impossible. When claims are made,
they are assigned to claims personnel and handled according to the terms of the policy. Pioneer Title
highly recommends that homeowners purchase the Homeowner’s Title Insurance Policy, which is the
industry standard now required, if available, by the AAR Residential Resale Purchase Contract. It offers the
qualified Purchaser the very best protection available.

Pioneer’s premium rates, as well as those of other title companies, are filed with the State Banking Department
and each title company is required to publicly post its schedule of fees and, as in all competitive businesses,
rates vary from company to company. Consumers should comparison shop prior to deciding on a given
title insurer, bearing in mind that some companies will charge an additional fee for something another
company has included in a set fee. Your Realtor can help you with your comparison.

Almost every title company maintains a “title plant” or database of title records; in some instances, these
records are well over one hundred years old, some in books, some on microfilm others on CD. Each
and every day, documents are recorded which affect real property as well as property owners and each
day the new information is stored so its available and easily retrieved when information on a parcel is
requested.

Title plant records maintenance, skilled personnel for research and evaluation, together with state of the art data
processing and legal interpretation are the foundation for your protection and peace of mind with your title policy
and represent the largest portion of your title insurance premium dollar.

Pioneer Title Agency

COMMITMENT TO SERVICE

Page 14