Pub. 6 2011-2012 Issue 2

July/August 2011 25 Extraordinary Service for Extraordinary Members. Carol Hayden, vicepresident of commercial services andclaims counsel for Investors Title Insurance Co., has worked in the title insurance industry since 1993. She has beenwith Investors Title since 1997, serving in the commercial services divisionanddirecting the Section 1031 like-kindexchangequalified intermediary operations. Reach Hayden at chayden@invtitle.com . When the lender resells the property, he may feel more comfortable giving a general warranty deed, having this added protection, which could make the property more marketable than conveying title by special warranty deed. 6. Obtain amore comprehensive policy. If the lender’s policy was a 1992 loan policy, the lender might prefer to have the broader coverage afforded by a 2006 owner’s policy. Some of the additional protections include: a) Cov- eredRisk #9 - Creditors rights coverage for prior transfers; b) Covered Risk #10 - Gap coverage as to liens, other than taxes or assessments, that attach between the policy date and deed recordation; c) An expanded definition of who the insured is, including more successors in interest; d) Expanded coverage as to the extent of loss (the amount of insurance is increased by 10 percent in cases where the insurer is unable to cure title); e) The claimant can choose to have the loss determined as of the date the claim was made or as of the date the claimwas paid or settled. If the value fluctuates up or down during the time the claim is open, the claimant gets the benefit to choose which date value is determined; and f) The insured is no longer held responsible for producing a copy of the policy (or evidence of its loss or destruction) in order to submit a claim. experience guidance How will you get where you want to go? BKD National Financial Services Group can help you choose the right path with more than 180 professionals who have the expertise you need to help improve performance, reduce risk, lower costs and stay in compliance. Learn more at bkd.com . experience Lincoln 402.473.7600 Omaha 402.392.1040 Conclusion • The U.S. Department of Housing and Urban Development (HUD), Federal Housing Administration (FHA), and the U.S. Department of Veteran Affairs (VA) already require a new owner’s policy when they acquire properties in foreclosure. • Getting a new policy takes the guesswork out of doing an in-depth analysis of whether a new policy is needed. • When the lender resells the property, he may feel more comfortable giving a general warranty deed, having this added protection, which could make the property more marketable than conveying title by special warranty deed. Z