Well, good morning East Tennessee.
Another beautiful, beautiful, sun shining morning out there today.
If you are just getting up and tuning in this morning, man, grab you a cup of coffee or
tea or whatever, whatever suits your fancy.
Man, today is definitely a front porch kind of day.
We're back porch, whatever porch you like.
You know what?
It's going to be nice today.
It's going to be hot, but humidity is going to be a little lower today.
I think we've got a high of about 86 today.
So get out, find something to do.
There's plenty happening around town today.
As always, I am Scott Brokamp, your host of Around the House, owner and founder of his
security and technology.
And well, my almost 30 years dealing with new construction in the housing industry, well,
we will talk about just about anything on this show.
If you have noticed, and I don't know about around your house, but around my house, man,
just about anything goes.
If you're looking for something to do, don't forget our baseballs are playing in Omaha
tonight in the college world series against LSU.
First pitch is set for 7pm.
Game is on ESPN and you can listen to John Wilkerson's play by play on our sister station,
WNML, the sports animal.
You dads want to, well, take your kids to the zoo this weekend.
Zoo Knoxville has 22 animatronic dinosaurs scattered among the exhibits, telling a story
that's millions of years in the making.
Or if you want a good scare, I Am's Nature Center is showing a double feature tonight
under the stars.
The Blair Witch Project and the craft headlined Terror in the Woods.
Gates opened at seven and the movie started sundown.
I hope your kids are a little older if you're going to that one.
So I just want to share with you, it's not this weekend, but it is coming at the end
of July.
It is Camp Kiki.
Kiki Malloy is hosting her very first annual softball camp.
It's going to be held at CAK.
You can get more information at the ladyvolboosterclub.com.
That's ladyvolboosterclub.com.
If you would like to know more about what's going on around town this weekend, visit Knoxville.com.
That's visitnoxville.com to get all the latest of happenings around town.
Well, if you've been listening this month, you'll know we are celebrating Home Ownership
Month.
June is National Home Ownership Month.
It's a celebration of one of the most important steps in living the American dream.
And that's owning your own home.
For the entire month of June around the house is focusing on the journey of the buying and
moving into your new home.
Here to help us understand the complex process of real estate transactions, we have two wonderful
ladies here joining us this morning.
We have Jeannie Davis, and she is with Independence Title.
And we also have Joni Wilson, who is from Conveyance Title.
Good morning, ladies.
Good morning.
How are you?
Very well.
Thank you.
All right.
So we're just going to go ahead and cover this right off the bat.
So we were, there was one title company that you all worked together at.
Now there's two title companies.
So break that down a little bit for us.
So nobody gets confused like me because I'm old and get confused easy.
Yes.
Independence Title has actually been in business 20 years this year.
And a little over a year ago, the owner of Independence Title actually started a second
title company called Conveyance Title.
And in May, we've actually celebrated our one year anniversary for Conveyance Title.
So we're sister companies, two different names, one great team.
There you go.
See, just two ways to be able to help serve our clients' needs, right?
Exactly.
It's pretty awesome.
Well, if you've been listening throughout the month, so we started out, we had our realtor,
which is where everybody agrees we should start with a great realtor.
We had our mortgage person.
And last week, we were talking with a home builder who could help us in the new home
build process.
And then we were also speaking with our home inspector.
So as we move through the process, we are to the title process.
And well, I'm just going to tell you, I've bought a few homes and the title process
has always just been weird to me.
I like, I'd never really understood it all.
Okay.
So I'm glad y'all are here because I'm sure there's people like me that, I mean, I get
it, I get parts of it, but you guys do so much that I don't get it.
So with that, where do I start?
I'm buying a home.
Where do I start?
I've got a realtor.
We're in this process.
And apparently you guys end up getting a lot of paperwork.
Yes.
Well, I disagree a little bit with your process.
I am actually under the impression that everyone should start by finding out how much home
they can afford first.
And so you want to start with a good lender.
And a lot of people don't realize that different lenders have different loan products, depending
on if you're a first time home buyer and how much money you have to put down and where
you're looking to buy.
So you definitely want to start with your lender first.
Get an idea of how much home you can actually afford and at that point, then once you have
a brief qualification letter, then we move on to the next steps.
Absolutely.
So when we did, we covered that.
So it was kind of funny because, you know, the realtor and the mortgage lender were both
kind of like, well, you know, we work so close hand in hand together.
So great, great point.
Thank you for bringing that up because you are right.
The very first thing is you need to understand what you can afford because until then, until
you have that pre qualification letter in hand, well, I'm just going to say it.
The only way I know how you're kind of just wasting everybody's time.
Yes.
So, and in today's market, there's no room for that.
No, no, no, there's not.
Okay.
So I'm pre qualified.
I know how much I can get.
We've found a home.
We've made our offer.
What are we doing next?
So next you will want to find a real estate agent that is for you.
So a lot of people don't realize that there are agents that have their areas of expertise.
So if there is an area of a certain school district, there, if you want to live in a
homeowner's association, if you don't things like that, there are realtors that specialize
in different things.
So you can actually search that or find a realtor that has that specific, like I said,
expertise and you find the realtor and you will set an appointment to meet with them
and then you can start looking for homes.
Right.
And identifying those key aspects that you're looking for in your home.
Do you want white countertops?
Do you not?
And identifying the things that can be easily changed, right?
I mean, that's an important piece of this.
So we have gotten to that process and let's say we've made the offer.
Our offer has been accepted and we're moving to closing.
So you guys are, I mean, that's kind of like, it's a big part.
That's it, right?
I mean, that's kind of like one of your biggest, that's your gig.
So where do we move from there?
What happens?
How do you get involved here?
Yeah.
So the realtor will typically send the contract over to us with all the contact information
and once that's received, we kind of take it from there and we'll handle of course the
process and all the way through closing and afterwards.
So but sometimes there is a disagreement on who's going, which title company is going
to handle the closing.
Then we have kind of different situations that we run into if we're handling buyers
and sellers or if we have an alternative closing that we consider to be a split closing.
So who gets to choose the title company in this transaction?
So you as the client always get to choose the title company.
So whether you're the buyer or the seller, you get to choose and not everyone understands
that.
Everyone think that if one party goes to a certain title company that you automatically
have to follow and that is not the case.
If there is a certain title company you want to close with, you can elect to close with
that title company always.
And not all title companies will do split closings, but we do.
So it's important for parties to know that.
You know what?
I think you have left us a great segue to come into our next segment because I want to
unpack that a little bit because you're right.
There is, that can be a tricky conversation.
I know because I've dealt with it and being in the industry, we see it a lot.
I mean, look, there is a lot of amazing people that work and do what you guys do.
And you know, we see it all the time and I'm sure you guys see it all the time as well.
So why would I unpack that when we come back?
But it lets you guys kind of explain that process so that our listeners know what their
rights are and kind of how that should look like and what's available to them.
So stay tuned with us.
Come back with us right here on Around the House on News Talk 97 WOKI.
Welcome back to Around the House.
I'm Scott Brokamp, your host this morning for Around the House.
And we have in studio with us, we have Jeannie Davis from Independence Title and we also have
Joni Wilson from Conveyance Title.
So if you were listening in the first segment, we kind of talked about how it was, they worked
together and now the Independence has opened another title company, Conveyance and Joni
is running that office and so that's where we get two title companies from one.
So thank you ladies this morning for joining us.
We certainly appreciate it.
So right before break, we were talking about the choice.
Who gets to choose what title company and Jeannie, you led to that, you know, either
the buyer or the seller, you have the choice for your side of that transaction, what title
company to use.
So help me understand that a little bit because I know that that gets confusing.
We've all been a part of transactions that this has kind of been a sore point.
So as I said, the client always gets to choose what title company they want to use.
Clients don't always understand that if one party closes at a specific title company,
that they do not have to close with them.
They have their choice, so they should always choose who they want to go with.
We always tried to build the relationship with each and every client that we have and
do a great job so that they want to come back and close with us again.
So if they have another transaction and they buy or sell a home and the other party goes
to another title company, they can still close with us.
Right, well, and we've been talking quite frankly all month about how buying a home
is a very emotional process.
And you know, there is, what you guys do is very important, not just for the primary
transaction, but for the future of that homeowner as well in that home.
So I mean, I know like me, there's people that I have done business with, I have a great
relationship with and I trust.
And if I'm closing out a home, I know who I want to do what pieces.
And so it's important for our listeners and everybody to understand that you do have that
choice.
And quite frankly, I mean, in your ladies line of work, in the title business, you've
got to be able to be flexible and work with other title companies because people need
to have the ability to make good decisions for themselves and not kind of feel like they're
stuck into making decisions that they're not happy with, especially in an emotional process
like buying a home.
Absolutely.
So thank you for helping clear that up.
So just remember, you have the choice.
You can choose the title company of your choice for your portion of your transaction.
And it's again, very important information to know because I know that it, not everybody
understands that properly.
So we're going to move on.
Now that you guys, you have received the contract, you have to paperwork.
We go into this thing called a title search.
What is that?
So we are looking for several different things on a title search.
We are making sure that there is clear title, which we'll go into a little bit later.
We are making sure that the people that are on the contract are still the current owners
of the property.
We're looking to see that the deed hasn't changed hands without being recorded.
There are no judgments that we need to clear, no unreleased deeds of trust, liens, things
like that.
You know, it blows me away that still some of the stuff that you think is common sense,
right?
Like the deed has changed hands and it's not been recorded.
And unfortunately, I know that that happens a lot more than you would think.
Right?
I mean, I'm like, how does this happen?
But anyway, I told you, I dig in these rabbit holes, right?
I kind of chased a few squirrels here and there.
We like rabbit holes.
All right.
There you go.
So as you're looking through all these, Joni, tell us, so what is it?
Where do you go to be able to search all this stuff?
How do you find, I mean, you're like an investigator.
You're digging through the rock pile to find out anything that goes on.
We actually have an attorney who does a 30-year search on the property at the register of
deeds of the county that the property is in.
And then once they're done with that search, they will send us all the recorded documents
for the last 30 years on that property that are relevant and along with a kind of a summary
of all of those documents.
And then a title agent, an experienced title agent will take that report, put all of that
information into the system, and generate what is called a commitment to ensure.
And this commitment is the most important document that we deal with in our office.
And this tells us if there are any judgments on the property, what are the property taxes,
when are they due, are they delinquent, are there any deeds of trust that are currently
open on the property that needs to be paid and released throughout the process of the
closing.
So it is an incredibly important document, and it tells us exactly what we need to do
so that our underwriter, which is Fidelity National, can ensure this property for the
buyer.
So when you say ensure the property, so I know most people are probably thinking, you
know, like homeowner's insurance, but it's not really what we're talking about, is it?
No, it's actually completely different than what your idea of insurance would be.
Most people think of homeowner insurance, car insurance, life insurance, and those are
all insurances that kind of take into account future happenings.
Title insurance goes backwards.
So if there was anything that happened on the property that could not be discovered
of record, so if someone fraudulently signed a document, if someone passed away who was
on title and had an heir that was not disclosed, maybe the black sheep of the family that people
didn't like is something like that, you know, a homeowner association that wasn't, you know,
that did not have documents recorded, but they're collecting dues for this property.
Any of those things that we can't go and actually see recorded, that is what a title insurance
policy takes into account.
Interesting.
Backwards insurance.
That's a good way to look at it.
So any event that something does occur, let's just say that, okay, there was an HOA that
was collecting money that was not found.
So what happens at that point?
We have different, we have two different policies.
We have a standard policy and an enhanced policy, which is for a homeowner.
Standard policies, you know, people who are purchasing investment properties, commercial
properties, anything like that can purchase a standard policy.
But these policies cover the owner from monetary loss if there are any title issues that are
discovered.
Gotcha.
So if you do come across a title issue in the future that happened in the past, you
would submit a claim to Fidelity National and they would take care of doing research
for that attorney fees, legal representation so that you are not losing money to handle
this claim.
See, you know, I knew this.
I told you when we started, right?
What you guys do is way more than what people really think and really understand.
And it's just, I don't know, it's boggling to me.
So now that we have backwards insurance, that's good.
I need a lot of that in my life.
Can I get that for other areas, by the way?
I know, right.
That's brilliant.
I'm gonna cash in.
I'm just gonna tell you.
So, all right.
So you go through, you go through the search, everything's good and we have a clean title.
What's a clean title mean?
In your guys', in your world, what's a clean title mean?
How's that?
So, a clean or clear title means there are no liens on the property, there are no judgments
filed in the buyers or the seller's name.
There are no encroachments.
It means that the borrower can take title free and clear with the clean owner's title
policy.
Okay.
Awesome.
And then your backwards insurance covers you in case something weird pops up in the
future.
Exactly.
So, you go backwards to go forwards.
I got it.
I'm just kidding.
Well, and it is though.
I mean, it's very important because I mean, I've heard crazy stories and I know that you
guys have crazy stories and I definitely want to hear about some of them by the way.
But you know, you just, I mean, you never know, right?
Things happen and we didn't always keep records and we have, we have homes that are hundreds
of years old.
And when you sell a home that's that old, we didn't always have records of everything.
That's right.
You don't always know.
It used to be a handshake.
It did.
It used to be, you know?
I mean, a little, little hawker and spit and handshake and there you got to do.
Or deeds that weren't recorded.
Yes.
Pieces of paper.
Yes.
And we have people, you know, buyers all the time, like, oh, this is a new construction.
Why would I need an owner's title insurance policy?
And that land that new home is sitting on has had a title dating back for years and
years.
And that might not always be clear just because it's a brand new home.
Doesn't mean the title is clear.
I mean, that's right, you know, because it again, and we see it, right?
There's masses of land that used to be farmed that were generations old that no longer are
farmed in, in whatever generation has possession of it says, you know what?
I don't want this land.
I don't want to farm it.
I don't want anything.
I just want to sell it.
And then, and then they sell it or maybe they subdivide it and, and there's all these things
that can occur.
So like you said, it's not just about the house.
It's about the entire piece of property, about the, the land and goodness gracious, what
was it?
We just heard a story recently about somewhere they, they found artifacts and, and I think
it was in Marival.
I don't remember the whole story, but I don't know.
It was like an antique show.
And then they come to find out there was, it's now turned into an archeological dig
and it's crazy, right?
I mean, cause you just don't know.
So anyway, sorry, there goes that rabbit hole.
All right, listen, we are going to take a short break.
If you've got questions or comments or concerns, feel free to give us a call, shoot us a text
865-656-8255, we'll be right back here on Around the House on News Talk, WOKI.
Welcome back to Around the House.
Man, I'm just going to tell you the sunshine in that window in the studio this morning,
it just, can we go outside Riley?
Can we make this happen outside?
I'm sure we can.
I mean, without going with the whole remote route, you know, just drop a cord out the
window.
Yeah, yeah, whatever.
Yeah, whatever.
I know better than that.
So titles, title insurance, title companies, all of the, well, fine details that happen
in that transaction when you buy or sell a house.
We have some professionals in the house with us this morning.
We have Jeannie Davis, who is with Independence Title, and we have Joni Wilson, who is with
Convenience Title.
Please ladies, if you want to get ahold of them, the easiest way is just visit their
websites for Independence Title.
You can go to indietitle.net, that's I-N-D-Y, title.net, or you can find Joni at conveyancetitle.com,
that's conveyancetitle.com.
Welcome.
Thank you.
Glad you all are here this morning.
I'm here.
I know that, I mean, you guys get the crazy stuff in these transactions, really.
I mean, everybody talks about the realtors and the home inspectors and the negotiations
of the fixes, don't fix that and all that crazy, but you guys really get, you get the
crazy of all of it, because you guys do the investigative work and find the weird stuff.
Yes.
Yeah, we do.
And then we have to figure out how to explain that to people.
So speaking of weird stuff, I know you all have some stories, and so when they come up,
just blur them out, we'd love to hear them.
So but when we have issues, we have things that need to be cleared.
What do we do?
How does, what's that process look like?
I'm sure it depends on what the issue is, but what are some of the, what are some of
the top five issues that occur regularly and what needs to be done to clear those up?
Number one, unreleased deed of trust.
Yes, definitely.
So that always takes a little bit longer.
So if there is an unreleased deed of trust or lean that, that we need to obtain, then
we will work on requesting that right away.
Sometimes that can take a couple of weeks to come in and we don't want the closing to
be delayed because we don't have that back.
So we will work on requesting that right away.
Okay.
So, so title one on one for dummies.
What is, what is the release of deed of trust?
Yeah.
So whenever you take out a loan on a property, that lender will have a deed of trust recorded
at the register of deeds.
That gives the lender the authority to foreclose on the property if you don't pay back the
money that you have borrowed from them.
And so whenever you do pay off that mortgage, the lender is supposed to have recorded at
the register of deeds a release for that deed of trust.
So sometimes we get, you know, our title search back and our current owners had refinanced,
they paid off a deed of trust and that last transaction, but there's no release recorded.
So we'll request, we'll go ahead and request that.
Sometimes though, there are owners two or three back in the chain of title and they're
still an unreleased deed of trust.
And that's a little trickier.
So we go ahead and try to request from that lender.
Sometimes that lender is no longer in business.
Sometimes we have to just track people down that on the property 20 years ago.
It just really just depends on what the document is.
You guys are the true CSI and in this real estate transaction.
I mean, you guys, you really are.
You're, I mean, you're the ones that have to define and fix, I guess.
Well, say what needs to be fixed.
How's that?
We call it super sleuthing.
Super sleuthing.
I feel a new show coming on, Riley.
Super sleuthing.
Sorry.
There we go.
All right.
So, so we found a problem and, and so now we know what needs to be fixed.
And so I'm assuming most of that stuff, you guys are doing the heavy lifting on to get
whatever documents need to be received to clear this up.
Is that right?
Yes.
Okay.
So, I think that's good because I don't think anybody has to have a clue on super sleuthing
on how to get in there and do that.
So, and this is where the title insurance comes in though, right?
Yes.
So if something got missed or something slipped through the cracks and we didn't have super
sleuths like y'all in the house doing our title search.
So now our title insurance would, would come into play.
Does that happen frequently?
Yes.
So whenever there is a title issue that we see back on the title report, our very first
question, does the current owner have an owner's title insurance policy?
A lot of times, I'm trying to think of a situation, old estates, you know, someone who died 40
years ago, something like that, had a bunch of kids.
Our very first question is going to be, do you have an owner's title insurance policy?
A lot of times we can go ahead and move on with an owner's title, title insurance policy
that did not take any exception to that estate issue in the past.
So I, and I can, you know, I'm, I'm seeing this in my head finally.
Sorry.
I'm a little cloudy.
I'm old.
So, so, you know, somebody passes away.
They will the property to whoever in the will and, and they take possession of that property
and well, you know, I mean, it was grandpa's farm.
So I just take possession and don't do any of the paperwork until, you know, somebody
finds it in a transaction and a title search set.
Is that sound fairly accurate?
Does this happen?
That does happen.
Yes.
That does happen.
And well, when someone passes away, their airs automatically inherit property.
There's not always a deed of record, but whenever that person goes to sell, we do have to track
down, you know, see if a probate was filed, if they had a will, if they did not have a
will disclose all the airs, get affidavit signed.
And if that happened back in the chain of title and you did, you're the seller and you
did not purchase an owner's title insurance policy, all those affidavits we have to record
all of that.
Those charges are going to be on your side of the settlement statement because it's your
responsibility to provide that marketable title for the buyer.
That sounds expensive.
It can be.
Just sounds expensive.
So all right.
So you guys have super sleuthed.
We have a, we've got a clear title.
We're ready to go.
So what do I need to know to be prepared for closing day?
So the first thing you will receive once your settlement agent, title agent, me or Joni
has balanced with your lender or if it's a cash transaction, has your settlement statement
prepared, they will send you that settlement statement.
So you can review that and you will know if you're the buyer, the amount you need to bring
to closing for your cash to close amount or if you're the seller, what your proceeds
amount will be.
So what you will be getting at the table for your transaction.
And you also need, you need to have all of your questions answered as well by the time
you get to the closing table.
So it is our job to make sure that when you sit down at that closing table, all of your
questions are answered that you are completely comfortable, that we have went over everything
with you and that you understand everything.
There are a lot of first time home buyers that are purchasing homes right now.
There are a lot of people selling homes that don't understand the process.
And it's our job to explain everything to them.
I can't tell you how many times I've worked with people, especially recently that have,
when I've explained things to them, have almost been shocked because they've worked
with somebody previously and said, you know, they weren't explained anything or they weren't
communicated to.
And so it's our job to make them feel comfortable when they sit down at that closing table.
And when I'm telling you, when you come out with that stack of paper, that makes anybody
nervous.
I'm just going to tell you, I mean, because nobody's, you know, nobody's read through
it all, right?
You know what I mean?
I mean, let's face it, we're in a world today that when you go sign up for whatever it is,
you just click that box.
Yes, I agree.
And nobody reads any of it, you know?
And you guys, you deal with, well, kind of the fallout when nobody reads it.
Yes.
I mean, sometimes it's worse than others.
Well, I can imagine that.
I can imagine that.
So when I come in to sign my documents, I'm doing my closing.
What do I need to know?
What should I be prepared for other than, you know, make sure I've done some wrist exercises
so I can get all them signatures done?
Yes.
And during closing, if you have a loan package, we allow you time to stretch.
You know, if you need to take a break, things like that.
That's good to know.
No, it's really not that bad.
If you are paying cash for a property, you would expect to spend 20 minutes with us.
Go through the documents.
If you have a loan, of course, you're going to spend more like 45 minutes or an hour with
us.
If this is your first time buying a home, we really will go through every document, make
sure you understand, you know, how payments are applied to your loan, what is escrow,
you know, that kind of thing.
And we do call it cash to close.
And in the past, we have had people show up with cash, do not bring cash to closing.
We need to have certified funds, so wires, cashier's checks, no personal checks, things
like that.
And not everybody knows that.
That is something that you should know before coming to closing.
And especially, we've had a lot of people who are coming from out of state, and they're
purchasing here.
And they're not aware that, hey, contact your bank before you leave the state that you're
currently living in.
See how that cash to close is going to work.
We don't want you coming to closing, and the bank can't get you money for another week.
A lot of, you know, just situations, every single transaction is a little different.
So we tailor the experience to the client.
And I mean, it is, I mean, every single one is going to be different.
And it's just like, I mean, I've bought several houses, but every house I bought has been
different.
And the emotional attachment in the process has been different.
And you know, and you guys, I mean, you're right there, you're the finish line, you know?
And so those emotions are either they're running high, whether they're on the good side or
the bad side.
And I know that you guys have to, well, sometimes be the, be the referee or counselors, but
anyway.
That is very true.
That's where the super sleuthin' comes in, you know how to handle it.
Oh, Lord.
Well, we are going to take a short break.
We're going to come back and we're going to wrap up our closing.
And we are, well, going to be presented with keys or the keyless access code or whatever
it is to get you into that new house that you just bought.
And I'm right back with us here on Around the House News Talk 97 WOKI.
Welcome back to Around the House.
And I just want to say congratulations.
It's closing day.
We're going to the closing table.
Woohoo.
Our super, our super sleuths have got our title all ready to go.
We're clear.
We're ready.
We've got Jeannie Davis from Independence Title and Joanie Wilson from Conveyance Title.
So both these ladies have worked together for years.
In fact, I'm just going to tell you they're a hoot right now.
I've just, I have really enjoyed this morning.
But anything title, they can definitely help you out.
So when you're in need for your title company, just remember Independence Title, Conveyance
Title, great options for you.
So we're going to close.
Before we close, we got one last thing.
So they're cash closing and a loan closing other than in about 20 minutes of paperwork.
I'm sure there's a lot of differences, but I'm sure there's a lot of similarities.
Any big major pitfalls that we would need to look at between the differences of those
two.
The basic main thing is when a loan closing is when you work with a lender to obtain financing
to purchase your home.
A cash closing is when you have the funds to purchase without using a lender.
Pretty simple.
Saves you about 20 minutes of paperwork.
At least.
Yeah, and about, well, at least 15 years in payments.
So there you go.
Lots of interest.
There you go.
Right.
So good things to know.
All right.
So closing table.
We're here.
I learned that the most popular thing to do now is apparently keep the parties separated
during closing.
I'm old fashioned.
I don't like it.
I don't get it, but it is what it is.
So I've come in.
You guys have gone through all my documentations.
I've signed all the papers.
Now, what do I do?
Well, we like to have all the parties together.
I do too.
I know during COVID we had to keep everybody separate, but now we've kind of started bringing
everybody back together and it's a lot of fun.
And I feel like at the end of the signing, we should have a confetti and streamers like
yay, we did it.
But sadly, we don't have that.
Now you have great things to put in what we can do to improve box at the office.
Like a balloon drop.
Yeah.
Since I wanted to clean all that mess up afterwards, because I am not doing it.
Oh, goodness.
All right.
So how do I know that the property has been put in my name and all that stuff after my
closing is done?
Because there's a lot of work that goes in afterwards that, well, quite frankly, I'm
just going to go and join my new home and kind of forget about.
Yeah.
So I'm sure buyers and sellers leave the closing table.
Title still has a lot of work to do.
If it's a cash transaction, it's really simple.
We make sure all the money is correct.
We record the warranty deed and go ahead and issue that title insurance policy, get you
copies of everything.
So that is a pretty simple process.
If there's a loan involved, we typically have to request funding authorization from the lender,
make sure that all of their documents are accurate, have their sign, how they like.
And then once we have authorization from this lender who is lending all this money so you
can buy this property, then we can go ahead, record that warranty deed very first, and
then we'll record that deed of trust, and then issue title insurance policy and get copies
of everything out to you.
So immediately after closing though, everyone will get an email saying, congratulations,
you are closed, and not long after that, should be less than two weeks typically, you will
get your recorded warranty deed at your mailing address with your title insurance policy.
Wow.
I'm just going to say, it sounds like you guys kind of get to short and stick here.
It sounds like you do a lot of work in this process.
We do.
We really do.
I mean, look, everybody involved in this process has a lot of work to do.
Okay, I mean, anywhere from mortgage to the realtor to the home inspectors, I mean, all
the way down the line, because again, as we have mentioned, and we will continue to mention,
this is the second most emotional process or situation that you will encounter in your
life.
And so buying a house is very emotional.
And it should be because, well, let's face it.
That's the American dream, right?
Yeah.
Own a home.
Sometimes it's the biggest thing someone's ever going to do in their life.
It's incredibly important, and that is not missed on us.
Yeah.
I mean, it is.
It's the largest purchase anybody will ever make.
So it's very important.
Well, I thank you, ladies, very much for joining me this morning.
And Jeannie Davis with Independence Title and you can find them at indytitle.net and Joanie
Wilson with Conveyance Title.
And you can find her at conveyancetitle.com.
Thank you again very, very much for helping us through that process.
And as we have added into Around the House, we are to, well, one of my favorite parts,
and that's the topic of the day.
So before we take a break, we're going to talk about it because technically it's tomorrow,
but I want to take a moment to talk about Father's Day being a dad.
Well, it kind of changed during COVID, right?
A lot of people, if they work, they work from home, found themselves spending more time with
their kids, yay, not everybody has the benefit to kind of just spend the time that they want
to.
But one of the things that really kind of exploded was, well, one of my favorites, dad
jokes.
I mean, who doesn't love a good dad joke, right?
So but, but I just want to tell you, I just, I got to pause and really talk about the importance
of Father's Day.
I'm sure many of people like me, my, my relationship with my father wasn't always great, but I
am happy to say he just left actually, he was just here this week and he comes up from
Florida every year as we play in the annual Home Builders Golf, Home Owners, Home Owners,
I can't even talk now, Home Builders Association Golf Tournament.
This was our eighth year, I think, participating and he turns 80 this year.
So it's just, it's so nice now when I get to spend time with my dad, it just is.
Our relationship is, is really quite amazing and I just want you to know, I know a lot
of folks who are listening this morning, they don't have that opportunity.
Their father is, is past and well, you know, I just want you to know if your father is
still alive, is still living, take the time, call them, text them, whatever it is, because
I'm just going to tell you, it took me a long time to learn how important it was to have
that relationship with my dad.
And I'm so glad that I finally pulled my head out of my rear end long enough to let bygones
be bygones, let whatever the past was to be the past and move on and have an awesome loving
relationship with my dad.
So, pops, I know you're not listening, but if you do pick this podcast up sometime, I
love you man, you're, you're amazing and I appreciate you.
So that's my tribute to my dad and, but I would be remiss if I didn't leave without
at least one dad joke.
Okay.
So, when does a joke become a dad joke?
Riley, when it becomes apparent.
Oh my God.
All right.
So listen, when we come back, we're going to finish talking about Father's Day.
If you've got a great dad joke, we want to hear it.
Give us a call.
Give us a text.
865-656-8255.
We will be right back with the best dad jokes in town here on Around the House on News Talk
987 WOKI.
Good morning and welcome back to Around the House.
I hope you enjoyed our guest this morning, Joni Wilson from Convenience Title and Jeannie
Davis with Independence Title as we were talking about making sure you're covered through the
closing process of that new home.
And so thank you ladies for joining us this morning and, and enlightening us in, well,
kind of what you guys do as we figured it out that they're the super sleuths in the
real estate process.
So our topic of the day, even though it's not officially today, it's tomorrow, it's
Father's Day.
That is our official topic of the day today.
And before we left, as I mentioned, I'm very grateful for my relationship with my dad.
And of course, we put out the call for dad jokes, and I'm sure everybody has a good
dad joke that they would want to share.
So you can do that at 865-656-8255, call or text, either way, we would love to hear from
you.
So back to the dad jokes.
I mean, let's just face it.
I love a good dad joke.
I just do.
But one of the things I enjoy most is just being a dad.
I've got two wonderful, amazing daughters that are very unique in their own ways.
And I'm just going to tell you, you know, you can, we see all these memes and shirts
and everything else, but I just the best name that I've ever been called is dad.
And man, I love them girls.
I love my girls to death.
And I'm so proud of them, even just at the very young ages that they are.
They are such amazing young ladies.
And I can't think of anything else that I'd rather do than be a dad, just to say, I just
can't think of anything better.
So with that being said, speaking of dads, I have a great dad visiting us right now.
And Mr. Chris Knight from William Knight Insurance.
And speaking of William Knight Insurance, William is your dad.
That's correct.
He is.
So you're dead.
He's a hoot.
I love seeing him down there at him's softball games.
Well, I just warm, warm my heart, warm my heart.
So, all right, as we continue on with the celebration of home ownership month, let's
just talk a little bit about what's going on today.
Right?
Hey, real quick before we go, Riley, I got a joke for you.
What did the, the better than last one?
It is not, it is not, no, it's not any better.
What did the Buffalo say when his boy went off to college?
What did he say?
Bye son.
See, I mean, come on.
You, I mean, you can't beat a dad joke.
I'm just, I'm just telling you.
Oh, I love it.
I love it.
Our softball team loves when we do our dad jokes, by the way.
So, hey, why is Cinderella not a good softball player?
She's only got one shoe.
Because she always runs away from the ball.
All right, there we go.
Moving on, moving on.
All right, listen, if you're looking for something to do today, don't forget, 7 p.m.
tonight, our baseballs are in Omaha in the college world series, first pitch, seven o'clock
against LSU.
Game will be on ESPN.
And of course, you can catch the call by John Wilkerson here on our sister station,
WNML, the sports animal.
If your dads want to take the kids to the zoo this weekend, Zoo Knoxville has 22 animatronic
dinosaurs scattered among the exhibits, telling a story that's millions of years into making.
Or if you want a good score, good scare, I Am's Nature Center is showing a double feature
tonight under the stars to blur which project and tear her into woods.
Gates open at seven and the movie starts at sundown.
For more information on all the events happening around town today, go to visit Knoxville.com.
That's visit Knoxville.com.
So as we continue our conversation for National Homeownership Month, with the look of protecting
your home and financial investment, my next guest is, well, my insurance agent, Mr. Chris
Knight from William Knight Insurance Agency, Chris, welcome.
Well, thanks for having me, Scott.
It's always a pleasure to come down to the 98.7 studio.
I've been here a couple of times when Dawn had her show.
Yeah.
It's always fun to get up early and make the trek down and spend a little time.
Yes, sir.
Well, hey, at least it was a beautiful morning to come and make that trek.
So, you know, I love that.
So, tell me a little bit about, I know, but tell our listeners about William Knight Insurance
Agency.
Well, my father started the agency in 1977.
I was in high school at that time and he had already had a long career in insurance and
he decided an opportunity came along for him to start his own agency.
So he did and it just kind of steadily grew.
I joined the agency in 2001.
I had been in the landscaping and lawn sprinkler business.
And I woke up one spring morning and it was already hot and dry and hadn't rained like
it is right now.
And the ground was hard and I said, there's got to be a better way to make, easier way
to make a living.
So I walked in his office one day and I said, I think I want to join the insurance agency.
And he said, well, son, go get your license and come back and see me.
So he had a great operations manager.
Everything was Peggy and Peggy, Peggy helped me get my license and that was 21 years ago
now or 22, I guess.
And it's been a blast.
It's been a blast.
Yeah.
Well, I can, I mean, I can, I could just imagine the conversation with your dad, you know,
what little bit I know him.
I could, yeah, I could definitely see him.
Nothing is going to come easy just because you're in the family doesn't mean you're getting
any special treatment.
No, and my son's in the business now too.
So, so that's kind of, it's kind of interesting, you know, to be a parent and have your children
work for you.
And it's tough.
It is, it's, you know, to try to, to try to be the boss and be the mentor and be the
father all at the same time.
Yeah.
Sometimes it can, sometimes it can be a challenge.
You know, I'm sure, I'm sure that and I, I shared a small stint working with my father.
I retired from the automotive industry.
I'll say retired.
I got out and, and dad was doing what a lot of folks who move here do.
He pre-tired, left his career and he said, Hey son, I'm going to buy a lawn business.
Do you want to help?
And so we lived in Southwest Florida and so it was nice and cool, right?
All year long.
Ha.
And I'm like, sure dad, let's do it.
And we worked together for about a year and a half and it's funny because everybody thought
this is not going to work well.
This is not going to turn out well.
And it, it enhanced our relationship tremendously.
I know that I gained a new respect for my father through working with him.
And I think it allowed us to, well, work through some of my daddy issues, I guess we'll just
call it what it is.
And so, you know, there's a lot of positives that can come from that, but I also know at
the same time, um, his, his expectation for me was a little different than, than some
of the other guys that were on the crew.
And, uh, but I'm grateful for that.
Yeah.
I would agree.
It's always working family.
I worked with my, my brothers, uh, when I was in the early in my career, when I was in
the lawn and in irrigation business, my brother worked with me and, and my other brother,
I had, there was four boys in our family and I had another brother that worked with us
some too.
And, uh, you kind of, it's, it's really, you have to be really careful because you could
expect more of your family than you can of the, you know, just an employee and, uh,
yeah, and it can, it can, it can be a challenge.
It can, it can.
And, and I think, I think most will look back in hindsight and, and really see the true
blessing that comes from it.
It's hard to see when you're in it, right?
But, uh, but I'm sure just as your, your dad looks back on where you're at in your career
and, and with the insurance agency that, um, I am without a doubt sure that your, your
dad is over the moon proud with, uh, what you have done you and your boys.
So, uh, I know we haven't really talked much about insurance, but we, we have talked a
little bit about Chris Knight and, and his family and their business.
When we come back, we're going to talk about, well, that insurance in the process of new
home ownership, what you need to know, what you need to protect and how you need to do
it right here on around the house.
News talk, 97 W okay.
Good morning, good morning and welcome back to around the house.
I'm Scott bro camp with his security technology and I have in studio this morning, Mr. Chris
night from William night insurance agency, uh, William night was Chris's dad.
So if you were listening in the first segment, uh, Chris shared with us a little bit about
the story of his dad and, and the agency.
If you need to get in touch with, well, in my opinion, one of the best insurance companies
in town, you can go to wki.com wki.com or you can give them a call at eight, six, five,
six, seven, zero, two, nine, nine, zero.
Um, Chris, you know, we were talking in the first segment with our, our, uh, super sleuths
from the title company.
We were talking about backwards insurance and I thought it was a great term, especially
right here in East Tennessee.
Um, and so we're gonna, you're going to talk to us about, well, forward insurance.
Uh, what is homeowners insurance and, and kind of what is it?
What does it do?
How does it work and why is it important in a real estate transaction?
Well, you know, uh, well, I'll talk about the last first.
It's important in that real estate transaction because the asset that the, the mortgage company
is using to protect their loan is that home and that's the collateral.
That's what, that's what allows them to loan you money and they want to make sure that's
that collateral is safe.
And that the way that's done is through, through homeowners insurance or, or if it was an automobile,
it'd be a car insurance policy, but we're going to talk about homeowners insurance today.
So the collateral for their loan is your home and they want that protected.
So they are always going to require you to have homeowners insurance when you borrow
money to purchase a home, but homeowners insurance is really simple and really complicated at
the same time.
I tell people, you know, insurance is nothing but risk transfer.
There's an exposure.
There's a risk out there and I can't afford to take that risk.
So the way I, I deal with that is as I transfer that to someone else and that other person
is the insurance company and they charge you some money to do that.
And that's just the way it is.
It's just simple risk transfer.
So, so that's insurance in a nutshell, but homeowners insurance itself is, is got a lot
of, a lot of bits and pieces and, and different things in it.
And the first thing it is, is it's going to protect that home.
It's going to protect it from certain losses, not all losses, but it's going to make it
so that if you, if you lose that home or if there's damage to that home, it's going to
help you get back to whole.
You know, we say insurance is designed to make you whole.
In other words, put you back to where you were before whatever happened happened.
Yeah.
And that's, you know, and again, I mean, you're, that's the asset, right?
It's the, that's the piece of collateral and whoever that lender is, is, well, they're
expecting it to stay in a position to be able to recapture their, their expense in, in the,
in the case that something does happen.
Um, so I mean, we can go nine million directions here.
So I tell me what are some of the, the biggest pitfalls that you see when you deal with homeowners
when, uh, with their homeowners insurance, some of the misconceptions about what it covers,
what it doesn't cover.
Obviously it's different depending on whatever state you may live in.
Um, so the, the, uh, probably the first thing we always run into when we're, when someone's
talking to us, we're talking to them about ensuring their home is, is how much to ensure
that home for.
Well, I'm only paying $375,000 for this house and that's all I want to ensure it for.
But we always, always at every homeowner's policy we issue, we run a cost estimator
and it's a complicated software program and every insurance company has their own and it
determines what it's going to cost to replace your home.
Now we've gone through times where people buy homes and, and we're, we're kind of in
one of those right now.
Um, you may buy a home for 400,000, but it may cost 450 to replace it.
And they're going, why do I have to ensure my home for 450,000?
Well, I only paid 400 for it.
And it's because we're insuring for what it costs to replace your home, not what you
paid for it.
And, uh, that's one of the biggest things we always run into is insurer to value.
And right now, one of the things that's going on in the industry is, is we're seeing, we've
had massive home inflation over the last several years and all the insurance companies
are catching up, trying to catch up, trying to get the coverage.
A, we call that coverage.
A, the amount that the home is insured for trying to get that back up to where it needs
to be so that if there is a total loss, that house does burn to the ground, that the money
is there to replace it.
Right.
Yeah.
I mean, because, you know, obviously the payment you're making is based upon that value.
And if, quite frankly, if you're underinsured, if something catastrophic happens, then, well,
quite frankly, you're, you're going to be at a position that you're underinsured.
So when it comes to rebuild or whatever you need to do, um, well, it's probably going
to require significant out of, out of pocket expense because you were underinsured.
So, so let's talk about in that, as we look at that total package, what about, what about
my assets inside the home?
Well, that's all part of your homeowner's insurance.
You have these different coverages.
Coverage A is your home, coverage B is other structures.
So that's going to be a fence, could be an outbuilding, a shed, a detached garage.
Coverage C is going to be your contents.
Maybe all of those other coverages, B and C, are, are a percentage of A. So some, some
carriers you can adjust that.
And some carriers is just fixed.
But you know, you'll see a lot of times where, if you have 400,000 coverage on your home,
you may have 200,000 for contents.
And that's how you protect your furniture, your clothing, your, your TVs, your stereos,
et cetera, et cetera, et cetera.
Now there are some, some limits within that policy on certain items.
For instance, jewelry will have a specific limit, firearms, money, bullion.
Those type of items will have inside limits, smaller limits.
So like for instance, you may only have $2,000 with a jewelry coverage.
It's not, it's not the amount, although it's not that 400, half of that 400,000, it may
have only a $2,000 limit.
So, so you may want to look at that situation that you're in, if you own, if you own jewelry,
if you own watches, if you own a lot of firearms, you may want to look at a rider or an endorsement
will come.
We'll talk about that later, that, that can solve that, that problem and, and protect
those assets also.
Yeah.
It's funny that most of those items you mentioned are the most popular that are stolen in burglaries.
Yeah.
I, I, I may know a little bit about that.
So we hear this term all the time called mortgage protection insurance or MPI.
What, what is that?
And, and how does that work in correlation with you?
What's the difference?
Well, mortgage protection, okay.
So your, your standard homeowner's insurance policy provides lots of coverages.
It covers your home.
It covers your personal liability.
It covers, you know, all those, those things that are in your home.
Mortgage protection insurance is specifically designed to protect you in the event that
something happens and you can't make your mortgage payment.
It's kind of like a life and disability policy, but it's, it's not, it, it doesn't have near
this, the underwriting on your, on your health and who you are when it comes to your life
insurance.
You know, you're not doing, having to do a medical exam and all that stuff to get it.
And what it's, what it does is, is it, it helps make your mortgage payment if you can't
work or something happens to you.
And that's, that's all it's designed to do.
It's not going to, to fix your home.
If, if, if a hellstorm ruins the roof on it, it's just going to help you make those mortgage
payments.
It's kind of like, you can buy that for automobile insurance too.
It's, you know, there's a product out there that a lot of auto dealerships will sell.
We don't sell mortgage protection insurance.
We sell homeowners insurance.
And I don't, I don't have a lot of knowledge about that product, just a little bit.
I would, I would steer, someone came to me and said, you know, I want to protect myself
in the event that I can't make my mortgage.
I would, I would talk to them about a disability product or a life insurance policy that would,
that would solve that problem.
Gotcha.
Yeah.
So forced, forced insurance.
So I know, like, if you're going to go buy a house and you're borrowing to get that house
and you have not got a policy to cover that house, that the mortgage company is going to
apply a forced insurance plan on that house.
What, what's that look like?
And what is that?
And how is that different than if I've got my own policy?
Well, you don't ever want to find yourself in a situation where you're having what we
call forced place coverage.
That's where the bank or the lender, if you do not keep your home insured, you're not
going to ever get to close that home without having insurance.
So, you know, and that's going to be a 12 month policy and you're going to have to pay
for that upfront and it's going to be in your closing cost.
But after that 12 month policy, after that first policy runs out, if you don't renew
your insurance policy for some reason, you fail to make your payment or you get canceled
for some reason and the bank finds out because you have to show them and your insurance company
and your insurance agent provide evidence that you have your home insured.
If they don't get that proof of coverage that your home is insured, they're going to insure
it for you.
And when they do that, it's very expensive.
They stick it on your house payment and all of a sudden you'll see your house payment
go through the roof and, and you'll go, what's gone wrong?
And it's because they put forced place coverage on it.
And the other thing about that forced place coverage is it's not a homeowner's policy.
It is only protecting the balance of that loan.
So, if something was to happen and you had forced place coverage and let's say you
had $100,000 of equity in your house and that house burned to the ground, you're not getting
any money out of that.
They're going to get their loan taken care of.
They're going to get the balance of your mortgage paid off and you're going to be left with
nothing.
And it's, it's very expensive and it's, it's not a good situation to be in.
Yeah.
I, I actually, I had that happen to me once and it was clearly just a mix up in paperwork.
The mortgage company did, they misplaced my renewal that was paid for out of the escrow
that they were holding.
So they knew they paid it.
I mean, they, and it was crazy, but yeah, I got a bill and it was like my mortgage payment
was up like, I mean, it was ridiculous amount of money.
I mean, I think it was almost 300, something dollars or three to $400.
And I'm like, what is this?
And sure enough, that's what happened and they had applied a forced policy onto our,
our loan due to the mix up.
And so luckily I was able to get it straightened out.
We very quickly, we see that, you know, mortgages are bought and sold every day.
So you may start out with, with a local lender and then they may sell that mortgage to someone
else and the address changes or where you send evidence of insurance.
And sometimes we're not told.
And so then we get the, you know, we get the, we get the phone call.
My bank does not know that I haven't, they don't think I have insurance on my home.
And I know I do.
And I go, well, yes, surely you do.
We know that you do.
And we find out that the evidence, the proof went to a different location.
So we're always not always, but every now and then we have to fix that problem.
Yeah.
Well, you know, it happens, right?
And that's why having an awesome local agent is so important because you can always get
a hold of, I can always get a hold of my folks over at William Night Insurance.
I'm sure all your clients can as well.
H 656702990 or wki.com is the easiest way to get a hold of Chris and his team.
We are going to be talking about what affects the price of that homeowner's insurance policy
when we come back right here on around the house.
We're just talking 97 W okay.
I
welcome back to around the house.
Hope you're enjoying this beautiful morning.
I hope you've been enjoying learning about, well, title insurance.
Now homeowners insurance, we are making sure that your process of buying and closing on
that home in the future of living in that home is going to be sound and secure with
me this morning is Chris Knight from William Night Insurance Agency.
And as we alluded to before the break in the event that well, something happens, I can
just tell you, I certainly love the fact that I can call my local agent right here.
And well, they're always happy to help.
I'm just going to tell you, they're always happy to help.
Chris, let's let's talk about what are the things that affect the price of that policy?
I mean, obviously the value of whatever we're ensuring is a part of it.
So what else goes into the pricing structure of our homeowners insurance policy?
Yeah.
And it varies a lot.
And I'll tell a story about a home I had insured down in West Knoxville.
And it was a street and all the houses were basically the same.
And it was about a six or $700,000 house and a guy buys the house next door.
And he says, man, you need to call my agent.
He's great.
He does a great job for me.
And so he has this new neighbor call me who's buying this home and I gave him a price and
it was almost double his neighbors.
And then we're talking about the same home, the same amount of coverage on the same street
in the same city.
Wow.
You know, and it was almost double.
And couldn't understand that.
He says, well, why is my neighbor so cheap?
And it's a tough discussion and I really didn't want to have it with him.
One of the biggest things that affects your insurance is your credit.
And it's amazing how much that we don't like to call it credit.
The industry got us away from calling it credit, but it is credit.
They call it insurance score.
So his insurance score wasn't as good.
So the big question is what affects your insurance score?
You know, we all know that, that, of course, if your home is a more expensive home, it's
going to cost more to ensure it.
This location can impact that if you're on the coast, if you're in a wildfire area, if
you're in tornado alley, if we'll call it that way.
And we're kind of becoming tornado alley now here in Tennessee, but your insurance score
has a lot to do with that.
Things you can do to protect your insurance score is have good credit.
And the other thing is, is not have claims.
You know, a lot of people want to use their homeowner's insurance as a maintenance for
their home.
They don't want to replace their roof, even though it's 25 or 30 years old, it needs to
be replaced.
They're just holding on for that hail storm.
And I know a roof is an expensive, expensive piece of the house, but small claims really
can work you over when it comes to your insurance.
A couple small claims is, is a lot worse than having one large claim when it comes to insurance.
Well, you know, we all hear stories that, you know, my insurance company canceled me
because I had too many claims or I had two claims in less than a year or whatever it
is.
And, you know, I mean, and I know you have to deal with those questions and I know a
lot of them, you know, you're underwriting for the best solution for your clients, but
I'm just going to tell you that that can be disheartening knowing that it's like, okay,
I'm paying for this service or this, this is the reason I have it in the, in the event
something happens.
But you're right.
It needs to be something kind of catastrophic, something major, you know, a tree falls on
the house or something major and not a maintenance tool.
Weather claims don't affect you nearly as bad as a maintenance claim.
maintenance claims or something like half your house got flooded because you had a 15
year old water hose go into your, your, your washing machine.
That's a maintenance top claim and, you know, or an older outdated electrical system that
needed some upgrades, you know, those things should be taken care of in your home.
You should do everything possible to keep your home is as good a kitchen condition as
possible.
We see probably more claims come from ice makers and, and water claims are the worst
claims and they come from ice makers and they, they come from that, that, that, that hose
going to your washing machine.
And I tell people replace that thing.
It's, it's $30 go to go to Home Depot, go to Lowe's, go to your local plumber and, and
have the, and get a new hose and replace that thing because we see a lot of claims come
from that.
You know, as time has gone on, we see that we see less, less claims coming from the ice
makers.
They used to have a little plastic tube that went to them and now they've, they've, they've
kind of upgraded that system and we're not seeing as much as that.
But water claims are really bad.
Carriers don't like water claims and they, you know, they cause a problem.
We had a big water claim this spring where, where somebody had left the garden hose on
the winter and that, and it caused that pipe to freeze inside the wall and he, he got the
hose out, he was doing something with it.
And while the, while he was running water through his garden hose, it was all pouring
out inside that wall.
So be sure to always disconnect your garden hoses in the, in the fall when you're, when
you're not using them because that pipe will freeze inside the wall if you keep a hose hooked
up.
And the pipe of claims are bad, but you know, other things that affect your insurance premium
a lot is the location.
That's a, that's a big thing.
And the age of your home, older homes are just more expensive to ensure they have, they
have more claims and, and, uh,
Well, more to go, more to, you know, more to happen.
Yeah.
Really?
Yeah.
And, you know, when you think about an older home in particular, you know, I mean, there
is just going to be more involved when something happens just because of the age of the home.
That's correct.
They're not only is the, the, the systems that have over time that they're used to construct
homes have changed tremendously.
You know, you know, I'm involved with the homeowner association.
So I, I stay in it up to speed on, on all that stuff and what's going on in new home
construction and of course Scott, you're involved in it and you're in new homes every day.
Uh, and you just see how things change over time and the floorings and the subfloors and
the plumbing and the, you know, we went from galvanized pipe to copper pipe and now everything
is, is pecs and you know, it looks like pecs is going to be a pretty good product.
I kind of, all these new products come out and I just cringe because, you know, I've,
I've been around long enough and of course my agency's been around long enough that we
see these products come along that look like they're going to solve every building problem
there is.
And, and it's not until 10 or 15 years later that we realize that that was a bad product.
You know, you, you mentioned that I'm going to ask, right?
So we had the, um, I forget what the product was even called, but the, the fiber board
siding that we had, there was just the whole huge lawsuits and everything like that.
So in the event that my home builder uses a, the new state of the art product and 10
years later we find out it's not what it was cracked up to be.
How does, how does that work with my homeowner's insurance company or does it?
It does work.
Uh, excuse me.
Uh, you know, uh, you know, when that was synthetic stucco, we called it synthetic
stucco and it was or EFAS and that was, that was an acronym for exterior insulation finishing
a system.
And it's where they actually stuck styrofoam on the outside of your house and then put
a coating over it.
And the only problem was, was, was, and that was long before we had house wrap and Tyvek
and all that stuff or, or all this new green board that they're building houses out of
now and they just had OSB with styrofoam glued to it and it'd get a little crack in it and
that water'd get in that styrofoam and if everybody's, anybody's ever been around styrofoam
after a while it absorbs water and then the house has just started rotten from the inside
out, but the insurance company's paid those claims.
So you know, if something comes along down the road and, and you know, 10 years later
it becomes a problem, you know, your insurance carriers are going to, going to cover that.
Depending on, on what it is now over time, these insurance companies come up with exclusions
and, and, and now there's, there's not necessarily an exclusion for synthetic stucco, but a lot
of carriers will not write homes that use synthetic stucco.
So that's where you run into a problem.
They'll cover that claim usually unless there's an, unless there's an exclusion out there
for that loss, but they may get to a point where they don't want to ensure that type
home.
So synthetic stucco homes are a little harder to ensure, you know, than, than just a regular
home with a brick or, or vinyl or, or wood or fiber cement siding.
Right.
Well, and you know, you mentioned that your involvement with the home builder association
and to say that you, you're, uh, involved is kind of an understatement.
You are, you are very much, uh, heavily involved and, and I know that you stay up to date with
a lot of the regulation.
Um, and I believe you, are you still on our governmental affairs team?
I do.
I sit on the membership committee and the governmental affairs committee.
And I really liked that governmental affairs.
It just, it just keeps me up to speed on how much is going on out there legislatively to
make our homes more expensive through taxation and through, through codes, uh, you know,
whether it be requiring sprinkler systems in homes or, uh, adequate facilities, taxes.
And, uh, there's a lot of, a lot of government that needs money and, and, uh, that's one
of the ways I get it.
Well, you know, I mean, that's, I guess that's another topic.
Two taxes are four, right?
All right.
Well, I think that's a great time to take a break.
Uh, well, when we come back, we are going to talk, uh, more about your homeowner insurance
policy and why does it seem like the price goes up every year?
There's, I'm sure a very good reason for that.
And we're going to learn about that when we come back right here on around the house
on news talk, WOKI.
Welcome back to around the house.
I'm Scott Brokamp, your host of around the house owner and founder of his security and
technology and my business partner, Mr. Doug Fraker, who is well officially on vacation
this week.
And, uh, Doug, if you're listening, enjoy some time away, buddy.
You deserve it.
Um, enjoy, enjoy the family time.
So, uh, one of the things that's not going to go up and that is your cost of listening
to this show, but what may go up most likely every year is your insurance policy.
Mr. Chris Knight from William Knight insurance is in the house and he's going to tell us
why that is.
Well, it almost always goes up and people don't understand that.
Uh, we may be able to move you to a different carrier because we're an independent agency.
So we have about 35 insurance companies we represent that we can write homeowners with.
And we might move you from one carrier to another and save you some money.
But at the end of the day, everybody's going up and they're always going up.
And it's really simple.
It's just one big reason why.
And that's inflation.
Everything costs more today than it did yesterday.
Everything costs more this year than it did last.
We look at it, you know, as we've gone through this cycle of huge, huge increases in the
values of your homes and we're tasked with making sure that we have your home insured
properly.
That keeps us out of court.
Yeah.
To be honest.
And, uh, but it, but it protects you and that's what we're here to do.
So as your home goes up in value, as it costs more to replace your home as lumber cycles
up and down, as new systems come into play, uh, you know, uh, we have to adjust our coverages
to, to take care of those things.
So not only is it going up on the home side, but it's going up on the cost side to run
businesses, you know, insurance companies, we hate to say it, but they're out there to
make money.
And you know, their, their inflation goes up to the cost of employees go up.
Everything is always going up.
That's just, that's just the way it is.
And I would rather have things going up than going down.
Let me tell you.
Well, I'll agree with that.
You know, it's, you know, I like inflation to be a little lower than it's being, but,
uh, as we see higher times of inflation, like we're, we're going through right now, we're
seeing homeowners renewals coming in a lot higher.
Uh, I had a carrier in my office yesterday that shared some news about about 15 insurance
companies that are the big ones around town.
And we saw rate increases or the, you know, all insurance rates are filed with the state
of Tennessee.
So that's public knowledge.
If you know how to get to it and, uh, those rates and we're seeing rates in increases anywhere
from 15 to 40% with an average in the twenties right now.
And so, and that's been going on all year and it will probably continue.
We're starting to see things get, get a little bit better, uh, inflation slowing down and
the insurance carriers, part of what they were doing was just catching up in, in the
value of your home.
You know, they have to increase your home.
10% you can expect your insurance premium to go up, uh, to affect that, to affect the
premium on your insurance.
When your coverage goes up, you're buying, you're buying more insurance and that, that's
going to go up.
But it's really, I'm on, I'm in an agency peer group and we're agents all over the country.
And my good friends in Florida have seen a hundred and 200% increases in their premiums
for the last several years.
You know, and, and, and I feel so, so bad for, for my agent friend down there that says she
has to pick up the phone and deliver the bad news that their homeowner's premium doubled.
And I just cannot imagine having to do that on a day in, day out basis.
And it's really tough on your staff, but inflation is a big thing and, and claims, claims will
make your insurance premium go up.
Don't, and that's just the way it is.
And, uh, so, you know, I'll have customers call me and they'll, they'll say, well, this
has happened.
What should I do?
Right.
And I say, well, you know, and it's, you know, I, I try to, try to coach them and I try to
advise them, but you know, at the end of the day, it's their decision.
You know, when you have a thousand dollar deductible and you turn in a $1,500 claim and you're
only going to get $500 out of it.
Right.
It's, that's not, that's not good, a good wise decision to make.
I know you bought insurance and I know it makes you mad when you, when you use it, uh,
and then that you get penalized for using it because, you know, I paid all these premium
for all these years.
I've heard those conversations and, and now I've had a claim and you're going to raise
my rates.
Well, I'm not raising your rates.
The insurance companies are.
Right.
Uh, we just sometimes have to be the messenger there that, that shares the bad, bad news,
but, but, uh, claims and inflation are the biggest driving factors.
Yeah.
And, uh, your carriers have a lot of discounts to help, help solve those problems.
Full pay discounts are great.
Uh, paying your premium on time.
If you're notoriously late, it will, will affect your insurance premium down the road.
So what other, what are options are available as far as helping to, um, get some discounts
on that policy?
Well, the biggest thing right now, and you hear it all the time when you're, when you
see commercials is bundling.
It is best if you can to bundle your home and your auto and your, if you have an umbrella
policy, which I advise most people to have an umbrella policy, which basically just gives
you more liability coverage than your homeowner's policy did, uh, bundling that insurance is
a big thing, uh, to, to reduce your cost.
Full pay discounts, uh, if you can afford to do that or, or, or good options.
Um, but, but the biggest factor is, uh, is bundling.
There are other things like if you have an alarm system that can save you some money.
Right.
Yeah.
So you can put them in that alarm system monitored.
And, uh, uh, if you have a home sprinkler system, it can, it can save you some, there's
some discounts for that.
Uh, different, there's different products, different things out there that can, can
discount, an automatic generator, uh, generator that automatically kicks on.
I was talking to one of the agents in my office today and she said, one of our carriers has
a new, came out with a new discount for automatic generators.
So those are, those are some of the things that can help discount, uh, your home premium.
And that changes, you know, I mean all the time, right?
As I know when we went to all these tankless water heaters
that, you know, being water claims are the biggest
and most expensive claims that a lot of these companies
were giving additional discounts.
If you had water monitoring and automatic water shutoffs,
tons of different things that are available.
And well, quite frankly, what I love about my insurance
company, William Knight Insurance, is that I can go walk
in the front door, sit down, have a meeting, go to lunch,
whatever it is, I can sit down face to face
and have that conversation because man, I just don't want
to have a 1-800 phone call to have that conversation.
That is not how I want to do that.
So if you need an awesome local insurance company,
William Knight Insurance, wkia.com is the easiest way
to reach them from their website
or give them a call at 865-670-2990.
If you missed part of today's show and want to listen again,
there's a link to the replays on my website.
Just go to hissecurity.com and click on the A-T-H radio tab
to find the recordings of all shows.
Or you can go to where you find your favorite podcast
and just search around the house with Scott Brokamp.
I want to thank my guests for being on the program today.
Jeannie Davis and Joni Wilson.
Jeannie is with Independence Title,
Joni is with Conveyance Title,
and then Chris Knight from William Knight Insurance Agency.
Have a top of your guests you'd love to hear on the show?
Send email with your suggestions and comments
to thehouse at hissecurity.com.
Around the house is produced by News Talk 98.7
with guest coordination services from Be Media Savvy.
We'll be back next week to wrap up our month-long look
at the home buying process.
We'll be talking about moving in
and personalizing your new home.
Until then, I hope you have some quality time
around the house today,
and remember, celebrate your father on Father's Day tomorrow.