One of the real joys of the Holiday Season is the opportunity to say thank you and wish you the very best for the New Year.  We are incredibly grateful to all of our agents who helped make 2018 one of our best years to date.  Instead of seasonal cards or boxes of chocolates, this year ATGF has adopted local families that need a little extra help making this Christmas special. Indeed, today the office is full of the sound of presents being wrapped by our team.

ATGF’s first ever Adopt-a-Family initiative is a by-product of a fundraising event the company conducted last summer for HomeAid Colorado. HomeAid connected ATGF with its partner organization Foster Source, “where we found two beautiful families who could use a little help this year,” says Devin Storms, Agency Manager at ATGF, Inc.

Foster Source supports foster parents to begin the healing process in vulnerable children. Most of their client­–foster parents have three or more children. Some take in many more.

How many? One of the two ATGF is supporting has ten children! They range in ages from 1 to 20. The other family has six, ages 2 to 18. 

ATGF wanted to make a real difference one on one with these kids, so we asked some questions to learn more about them. We had so much fun shopping for them, but nothing compares to the joy and the smiles we saw when we delivered those presents to the families. “ATGF is pleased to have helped bring smiles to these beautiful families’ faces,” says Mrs. Storms.  In fact, several ATGF employees contributed personal funds to make sure that everyone received something really special.

It really is better to give than to receive.

ATGF Agents,  

Do you have Halloween Spirit? We want to see it! Send us pictures of your Decorated Office, Costumes or Jack O’ Lanterns. The 5 most creative, spookiest and fun submissions will get a prize.  We are decorating our office and are looking forward to seeing what you all come up with.

ATGF is excited to announce our expansion into Arizona, with the addition of Tyrone “ TJ” Johnson as State Agency Manager. In addition to Arizona, TJ will be serving our agents in Minnesota and North Dakota.

TJ has served the title insurance industry since 1996, spending the first 20 years of his career working on the independent agent side of the business where he was very fortunate and eager to learn all aspects of agency operations. During that time he rose to the position of Operations Vice President, with executive oversight of a multi-office, statewide operation, personnel and administrative functions and business development and regulatory compliance. Later, he served as a State Agency Manager overseeing a three state territory for a major national title insurance underwriter. From these leadership positions he was able to further enhance company brand awareness and long term financial success.

TJ’s true passion is spending time and consulting with independent title agents, learning about their business operations and finding ways to help them achieve their goals. In his new role he will have an opportunity to develop relationships and new lines of business, while building upon and strengthening existing partnerships.

ATGF is excited to add TJ and his knowledge and expertise to our team!

The owner’s policy has five sections: covered risks, the exclusions from coverage, Schedule A, Schedule B and the conditions.

1. Covered Risks

This section lists what kinds of risks the policy insures against. However, the policy makes it clear that the insurance of the listed risks are subject to (1) the Exclusions listed following the Covered Risks, (2) any exceptions listed in Schedule B, and (3) the Conditions.  In the most current ALTA Owner’s policy, there are ten covered risks listed in the policy.  Some of the most important covered risks are:

1.    the risk that someone else owns your property

2.    that there is some defect or encumbrance on your title caused by fraud or forgery

3.    any liens for real estate taxes or assessments that are due but unpaid

4.    that your title is unmarketable, that is, you are unable to sell your property to a purchaser because of a title defect

5.    right of access to and from your land.

Review your owner’s policy or ask your title agent about the covered risks included in your policy.

2. Exclusions

Exclusions limit the coverage of the policy. They deal with issues that are outside the control of the title company. The ALTA owner’s policy contains five exclusions, which include matters such as governmental regulations on the land and eminent domain, as well as title matters created or agreed to by the insured, or title defects known to the insured but not disclosed in writing to the title company prior to the date of the policy.  The policy does not insure against any defect or title issue that is created or attaches to the property after the date of the policy.  Also, the policy does not insure against the effects of bankruptcy law on the transaction creating the insured interest.

3. Schedule A

Schedule A sets forth the specific information on the title and policy, such as the date of policy, the amount of insurance, the insured, the legal description of the land insured by the policy and the estate insured, such as fee simple or leasehold.  Schedule A must be attached to the policy in order for the policy to be valid.

4. Schedule B

Schedule B lists the various exceptions to the title that the title company found when it performed its title search. Common exceptions would be things such as prior unreleased mortgages on the property, easements, taxes, restrictions on the use of the property, and any other limitations on the title such as homestead rights or survey issues if no survey has been performed. By listing various items as exceptions, the title company is telling the insured that these items are not covered by the title policy, and that the title company will not pay a claim or defend against a claim based on these excepted items.

5. Conditions

This section outlines the relationship between the insured and the title company.  Paragraph 1 contains the definitions of certain terms used in the policy. Terms such as “Insured,” “Insured Claimant,” “Knowledge” and “Public Records” are defined so as to eliminate any ambiguity.  There are several different paragraphs setting out how a claim under the policy is handled, including how to provide notice of a claim, what is required to prove loss, and the requirement that the insured must cooperate with the title company in the handling of the claim. The Conditions describe the rights of the title company to pay or settle the claim, and the determination, extent and limitation of liability. Most policies also contain a paragraph that allows the insured or the title company to demand arbitration if the amount is under $2 million.

Effective immediately, EPIC will remind you to re-issue a CPL when you have changed your selected lender. The following message will appear. Simply select OK and issue another CPL as usual.

Please contact our office with any questions 303-292-3055

While owner’s title insurance is optional to a homebuyer, we rarely hear homebuyers bemoan the fact that they are required to obtain homeowner’s insurance. The cost of owner’s title insurance premium paid by homebuyers to cover a hypothetical property costs $1,000 as a one-time premium without a deductible, while homeowner’s insurance would cost that same homebuyer $879 annually with a $500 deductible.

In other words, over a period of ten years of homeownership, that same homebuyer/homeowner would pay $962 for owner’s title insurance but pay $8,790 for homeowner’s insurance. Yet, rarely do we hear complaints about the required homeowner’s insurance coverage. But why?

Here are the stats that give rise to the negative chatter over owner’s title insurance...

According to the Insurance Information Institute, 6 percent of insured homes had a claim against the homeowner’s insurance policy compared to less than 1 percent of title insurance policy holders.  In an average year, the homeowner’s insurance industry paid out roughly $0.87 for every $1 in premium; whereas, the title insurance industry paid out only $0.05 for every $1 in premium. 

These statistics on their face – without an understanding of title insurance as a "risk elimination" line of indemnity insurance – raise eyebrows.

Further, these statistics would lead one to assume that the title insurance industry is a far more profitable industry than the homeowner’s insurance industry when, in fact, the opposite is true. As of 2008, the top three title insurance underwriters lost money while the top three homeowner’s insurance companies were profitable.

But here is the rub...

Title insurance is not homeowner’s insurance. Title insurance is about "risk elimination" of title problems arising from past events and not "risk assumption" of future events.

According to the American Land Title Association, 25% of properties have a title defect that requires clearing and curing title prior to closing and, in most cases, this work is performed and cured without the parties to the transaction ever knowing about it.

The cost for this work is paid with title insurance premiums; both to the title agent in the form of commissions and to third-party service providers for reviewing and clearing title. Title insurance premiums also pay for the cost of maintaining accuracy of title plants and other title records.

So, in addition to paying out claims for human error or fraud by a seller or prior homeowner, the title insurance premium also covers work performed for eliminating the risk of a title defect.

Before the advent of title insurance, homebuyers hired and paid attorneys to review title, cure title, and issue an attorney’s opinion title. If the attorney erred, the homeowner could make a claim against the attorney – assuming the attorney had not since been disbarred for malpractice.

In this modern world, the homeowner has the option of purchasing owner’s title insurance for which they can rely on the title insurance underwriter (or, in the event of a defalcation or bankruptcy, it’s regulating state insurance commission) to make good on a claim.

Who Benefits:

Title insurance services offer a wide range of protection to the many different parties who have various interests in real estate transactions. The benefits of title insurance protect:

• Real Estate purchasers

• Sellers

• Lenders

• Real Estate Brokers

• Attorneys

• Homebuilders

    In an ongoing effort to continually support our agents, ATGF has recently partnered with a third-party vendor, Ship Club, to provide discounted shipping rates to our agents in all states. This would allow our agents to take advantage of special group pricing for UPS, FedEx and USPS. While this is geared mainly toward agents who don’t currently have accounts with these shipping providers or another third-party vendor, if you already have an existing UPS, FedEx or third-party account, they can provide helpful tips and guidance on negotiating a better rate with your current shipping vendor.

    The payment option for shipping will be Net-15 via credit card, and they are developing an ACH option, which will be available in the coming months. Their shipping portal is very user friendly and you will have the option to choose from FedEx, UPS or USPS, whichever has the best pricing. You will be able to view and download your invoices online, and you’ll be able to order free supplies for the shippers you use.

    If you are interested in receiving more information and/or signing up for these special, discounted rates, please complete the attached questionnaire and email to atgf@ourshipclub.com. Sharon Lynn is our point of contact and will setup your account through the www.ourshipclub.com website.

    If you have any other questions regarding this benefit, please contact Beth Starbuck via email at bstarbuck@atgf.net, or via phone at 303.383.4325.

Denver, Colorado                                                                                                          May 7, 2018

Attorneys Title Guaranty Fund, Inc. (ATGF) Chairman, Maurizio Romanin, and President, Eric Morgan, announce that Brian Phillips has been named Chief Executive Officer of ATGF.  “We’re moving into an ambitious growth phase and adding strength to our senior leadership team.  Brian’s expertise and background make him a natural fit to lead operations and engage in ongoing development of our innovative technology for title agents,” Romanin stated.   

Eric Morgan will continue as President and have primary responsibility for ATGF’s licensing expansion, financial operations and regulatory relations.  “Expanding our leadership team allows us to devote greater resources to proactive business development initiatives.  Moving Brian into this role is a significant step for taking the company to the next level,” Morgan added. “I’m excited to focus on the areas where I can make the greatest contribution to our ongoing success.”

Phillips expressed his excitement at assuming this leadership role at a dynamic and growing company.  “ATGF’s record financial performance and dynamic, forward thinking approach have us in a great position to grow.  I look forward to building upon the success achieved since the Company’s transfer of ownership and management in 2010.  I’m excited to work with the exceptional employees at ATGF and to help our team continue delivery of exceptional support services to existing and new agents in many additional states.”

Mr. Phillips’s experience includes representing clients in land use disputes, title claims, defense of title insurers, as well as real estate acquisitions, development and finance.  He has a proven track record in assisting clients and achieving desired results.  Prior to joining ATGF, Mr. Phillips was Vice President and Senior Claims Counsel for a major national title insurer.   “After Phillips joined ATGF as Associate General Counsel early in 2017 I quickly recognized he was capable of leading ATGF’s next phase of growth,” said Romanin.  “Brian’s become an invaluable resource to our agents and our business,” added Morgan.  “We want to tap into all of his skills to grow our business and technological capabilities.” 

About Attorneys Title Guaranty Fund, Inc.

Founded in 1960, ATGF has been providing best in class title insurance underwriting and services for more than 50 years.  The company’s mission is helping agents succeed through trusted products and services, innovative technology and amazing support. ATGF has maintained a strong Financial Stability Rating^® (FSR) of A, Exceptional, from the independent rating agency, Demotech, Inc. For more information on ATGF or EPIC, contact ATGF’s CEO, Brian Phillips at bphillips@atgf.net or 303-383-4333. www.atgf.net

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