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Well, good morning East Tennessee.

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Another beautiful, beautiful, sun shining morning out there today.

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If you are just getting up and tuning in this morning, man, grab you a cup of coffee or

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tea or whatever, whatever suits your fancy.

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Man, today is definitely a front porch kind of day.

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We're back porch, whatever porch you like.

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You know what?

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It's going to be nice today.

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It's going to be hot, but humidity is going to be a little lower today.

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I think we've got a high of about 86 today.

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So get out, find something to do.

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There's plenty happening around town today.

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As always, I am Scott Brokamp, your host of Around the House, owner and founder of his

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security and technology.

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And well, my almost 30 years dealing with new construction in the housing industry, well,

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we will talk about just about anything on this show.

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If you have noticed, and I don't know about around your house, but around my house, man,

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just about anything goes.

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If you're looking for something to do, don't forget our baseballs are playing in Omaha

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tonight in the college world series against LSU.

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First pitch is set for 7pm.

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Game is on ESPN and you can listen to John Wilkerson's play by play on our sister station,

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WNML, the sports animal.

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You dads want to, well, take your kids to the zoo this weekend.

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Zoo Knoxville has 22 animatronic dinosaurs scattered among the exhibits, telling a story

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that's millions of years in the making.

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Or if you want a good scare, I Am's Nature Center is showing a double feature tonight

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under the stars.

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The Blair Witch Project and the craft headlined Terror in the Woods.

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Gates opened at seven and the movie started sundown.

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I hope your kids are a little older if you're going to that one.

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So I just want to share with you, it's not this weekend, but it is coming at the end

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of July.

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It is Camp Kiki.

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Kiki Malloy is hosting her very first annual softball camp.

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It's going to be held at CAK.

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You can get more information at the ladyvolboosterclub.com.

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That's ladyvolboosterclub.com.

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If you would like to know more about what's going on around town this weekend, visit Knoxville.com.

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That's visitnoxville.com to get all the latest of happenings around town.

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Well, if you've been listening this month, you'll know we are celebrating Home Ownership

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Month.

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June is National Home Ownership Month.

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It's a celebration of one of the most important steps in living the American dream.

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And that's owning your own home.

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For the entire month of June around the house is focusing on the journey of the buying and

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moving into your new home.

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Here to help us understand the complex process of real estate transactions, we have two wonderful

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ladies here joining us this morning.

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We have Jeannie Davis, and she is with Independence Title.

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And we also have Joni Wilson, who is from Conveyance Title.

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Good morning, ladies.

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Good morning.

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How are you?

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Very well.

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Thank you.

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All right.

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So we're just going to go ahead and cover this right off the bat.

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So we were, there was one title company that you all worked together at.

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Now there's two title companies.

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So break that down a little bit for us.

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So nobody gets confused like me because I'm old and get confused easy.

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Yes.

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Independence Title has actually been in business 20 years this year.

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And a little over a year ago, the owner of Independence Title actually started a second

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title company called Conveyance Title.

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And in May, we've actually celebrated our one year anniversary for Conveyance Title.

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So we're sister companies, two different names, one great team.

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There you go.

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See, just two ways to be able to help serve our clients' needs, right?

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Exactly.

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It's pretty awesome.

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Well, if you've been listening throughout the month, so we started out, we had our realtor,

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which is where everybody agrees we should start with a great realtor.

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We had our mortgage person.

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And last week, we were talking with a home builder who could help us in the new home

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build process.

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And then we were also speaking with our home inspector.

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So as we move through the process, we are to the title process.

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And well, I'm just going to tell you, I've bought a few homes and the title process

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has always just been weird to me.

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I like, I'd never really understood it all.

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Okay.

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So I'm glad y'all are here because I'm sure there's people like me that, I mean, I get

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it, I get parts of it, but you guys do so much that I don't get it.

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So with that, where do I start?

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I'm buying a home.

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Where do I start?

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I've got a realtor.

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We're in this process.

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And apparently you guys end up getting a lot of paperwork.

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Yes.

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Well, I disagree a little bit with your process.

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I am actually under the impression that everyone should start by finding out how much home

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they can afford first.

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And so you want to start with a good lender.

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And a lot of people don't realize that different lenders have different loan products, depending

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on if you're a first time home buyer and how much money you have to put down and where

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you're looking to buy.

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So you definitely want to start with your lender first.

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Get an idea of how much home you can actually afford and at that point, then once you have

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a brief qualification letter, then we move on to the next steps.

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Absolutely.

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So when we did, we covered that.

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So it was kind of funny because, you know, the realtor and the mortgage lender were both

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kind of like, well, you know, we work so close hand in hand together.

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So great, great point.

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Thank you for bringing that up because you are right.

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The very first thing is you need to understand what you can afford because until then, until

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you have that pre qualification letter in hand, well, I'm just going to say it.

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The only way I know how you're kind of just wasting everybody's time.

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Yes.

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So, and in today's market, there's no room for that.

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No, no, no, there's not.

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Okay.

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So I'm pre qualified.

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I know how much I can get.

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We've found a home.

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We've made our offer.

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What are we doing next?

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So next you will want to find a real estate agent that is for you.

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So a lot of people don't realize that there are agents that have their areas of expertise.

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So if there is an area of a certain school district, there, if you want to live in a

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homeowner's association, if you don't things like that, there are realtors that specialize

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in different things.

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So you can actually search that or find a realtor that has that specific, like I said,

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expertise and you find the realtor and you will set an appointment to meet with them

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and then you can start looking for homes.

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Right.

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And identifying those key aspects that you're looking for in your home.

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Do you want white countertops?

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Do you not?

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And identifying the things that can be easily changed, right?

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I mean, that's an important piece of this.

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So we have gotten to that process and let's say we've made the offer.

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Our offer has been accepted and we're moving to closing.

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So you guys are, I mean, that's kind of like, it's a big part.

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That's it, right?

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I mean, that's kind of like one of your biggest, that's your gig.

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So where do we move from there?

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What happens?

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How do you get involved here?

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Yeah.

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So the realtor will typically send the contract over to us with all the contact information

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and once that's received, we kind of take it from there and we'll handle of course the

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process and all the way through closing and afterwards.

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So but sometimes there is a disagreement on who's going, which title company is going

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to handle the closing.

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Then we have kind of different situations that we run into if we're handling buyers

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and sellers or if we have an alternative closing that we consider to be a split closing.

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So who gets to choose the title company in this transaction?

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So you as the client always get to choose the title company.

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So whether you're the buyer or the seller, you get to choose and not everyone understands

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that.

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Everyone think that if one party goes to a certain title company that you automatically

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have to follow and that is not the case.

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If there is a certain title company you want to close with, you can elect to close with

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that title company always.

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And not all title companies will do split closings, but we do.

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So it's important for parties to know that.

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You know what?

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I think you have left us a great segue to come into our next segment because I want to

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unpack that a little bit because you're right.

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There is, that can be a tricky conversation.

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I know because I've dealt with it and being in the industry, we see it a lot.

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I mean, look, there is a lot of amazing people that work and do what you guys do.

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And you know, we see it all the time and I'm sure you guys see it all the time as well.

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So why would I unpack that when we come back?

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But it lets you guys kind of explain that process so that our listeners know what their

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rights are and kind of how that should look like and what's available to them.

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So stay tuned with us.

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Come back with us right here on Around the House on News Talk 97 WOKI.

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Welcome back to Around the House.

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I'm Scott Brokamp, your host this morning for Around the House.

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And we have in studio with us, we have Jeannie Davis from Independence Title and we also have

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Joni Wilson from Conveyance Title.

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So if you were listening in the first segment, we kind of talked about how it was, they worked

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together and now the Independence has opened another title company, Conveyance and Joni

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is running that office and so that's where we get two title companies from one.

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So thank you ladies this morning for joining us.

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We certainly appreciate it.

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So right before break, we were talking about the choice.

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Who gets to choose what title company and Jeannie, you led to that, you know, either

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the buyer or the seller, you have the choice for your side of that transaction, what title

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company to use.

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So help me understand that a little bit because I know that that gets confusing.

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We've all been a part of transactions that this has kind of been a sore point.

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So as I said, the client always gets to choose what title company they want to use.

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Clients don't always understand that if one party closes at a specific title company,

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that they do not have to close with them.

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They have their choice, so they should always choose who they want to go with.

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We always tried to build the relationship with each and every client that we have and

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do a great job so that they want to come back and close with us again.

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So if they have another transaction and they buy or sell a home and the other party goes

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to another title company, they can still close with us.

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Right, well, and we've been talking quite frankly all month about how buying a home

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is a very emotional process.

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And you know, there is, what you guys do is very important, not just for the primary

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transaction, but for the future of that homeowner as well in that home.

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So I mean, I know like me, there's people that I have done business with, I have a great

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relationship with and I trust.

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And if I'm closing out a home, I know who I want to do what pieces.

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And so it's important for our listeners and everybody to understand that you do have that

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choice.

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And quite frankly, I mean, in your ladies line of work, in the title business, you've

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got to be able to be flexible and work with other title companies because people need

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to have the ability to make good decisions for themselves and not kind of feel like they're

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stuck into making decisions that they're not happy with, especially in an emotional process

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like buying a home.

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Absolutely.

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So thank you for helping clear that up.

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So just remember, you have the choice.

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You can choose the title company of your choice for your portion of your transaction.

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And it's again, very important information to know because I know that it, not everybody

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understands that properly.

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So we're going to move on.

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Now that you guys, you have received the contract, you have to paperwork.

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We go into this thing called a title search.

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What is that?

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So we are looking for several different things on a title search.

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We are making sure that there is clear title, which we'll go into a little bit later.

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We are making sure that the people that are on the contract are still the current owners

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of the property.

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We're looking to see that the deed hasn't changed hands without being recorded.

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There are no judgments that we need to clear, no unreleased deeds of trust, liens, things

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like that.

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You know, it blows me away that still some of the stuff that you think is common sense,

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right?

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Like the deed has changed hands and it's not been recorded.

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And unfortunately, I know that that happens a lot more than you would think.

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Right?

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I mean, I'm like, how does this happen?

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But anyway, I told you, I dig in these rabbit holes, right?

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I kind of chased a few squirrels here and there.

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We like rabbit holes.

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All right.

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There you go.

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So as you're looking through all these, Joni, tell us, so what is it?

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Where do you go to be able to search all this stuff?

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How do you find, I mean, you're like an investigator.

241
00:15:02,280 --> 00:15:06,480
You're digging through the rock pile to find out anything that goes on.

242
00:15:06,480 --> 00:15:11,920
We actually have an attorney who does a 30-year search on the property at the register of

243
00:15:11,920 --> 00:15:15,640
deeds of the county that the property is in.

244
00:15:15,640 --> 00:15:19,920
And then once they're done with that search, they will send us all the recorded documents

245
00:15:19,920 --> 00:15:28,480
for the last 30 years on that property that are relevant and along with a kind of a summary

246
00:15:28,480 --> 00:15:30,440
of all of those documents.

247
00:15:30,440 --> 00:15:36,360
And then a title agent, an experienced title agent will take that report, put all of that

248
00:15:36,360 --> 00:15:42,480
information into the system, and generate what is called a commitment to ensure.

249
00:15:42,480 --> 00:15:48,120
And this commitment is the most important document that we deal with in our office.

250
00:15:48,120 --> 00:15:54,360
And this tells us if there are any judgments on the property, what are the property taxes,

251
00:15:54,360 --> 00:15:59,600
when are they due, are they delinquent, are there any deeds of trust that are currently

252
00:15:59,600 --> 00:16:06,080
open on the property that needs to be paid and released throughout the process of the

253
00:16:06,080 --> 00:16:07,080
closing.

254
00:16:07,080 --> 00:16:13,360
So it is an incredibly important document, and it tells us exactly what we need to do

255
00:16:13,360 --> 00:16:18,120
so that our underwriter, which is Fidelity National, can ensure this property for the

256
00:16:18,120 --> 00:16:19,120
buyer.

257
00:16:19,120 --> 00:16:24,920
So when you say ensure the property, so I know most people are probably thinking, you

258
00:16:24,920 --> 00:16:29,600
know, like homeowner's insurance, but it's not really what we're talking about, is it?

259
00:16:29,600 --> 00:16:34,840
No, it's actually completely different than what your idea of insurance would be.

260
00:16:34,840 --> 00:16:39,200
Most people think of homeowner insurance, car insurance, life insurance, and those are

261
00:16:39,200 --> 00:16:43,880
all insurances that kind of take into account future happenings.

262
00:16:43,880 --> 00:16:46,080
Title insurance goes backwards.

263
00:16:46,080 --> 00:16:51,160
So if there was anything that happened on the property that could not be discovered

264
00:16:51,160 --> 00:16:57,480
of record, so if someone fraudulently signed a document, if someone passed away who was

265
00:16:57,480 --> 00:17:02,080
on title and had an heir that was not disclosed, maybe the black sheep of the family that people

266
00:17:02,080 --> 00:17:09,200
didn't like is something like that, you know, a homeowner association that wasn't, you know,

267
00:17:09,200 --> 00:17:14,520
that did not have documents recorded, but they're collecting dues for this property.

268
00:17:14,520 --> 00:17:21,240
Any of those things that we can't go and actually see recorded, that is what a title insurance

269
00:17:21,240 --> 00:17:23,560
policy takes into account.

270
00:17:23,560 --> 00:17:24,560
Interesting.

271
00:17:24,560 --> 00:17:25,560
Backwards insurance.

272
00:17:25,560 --> 00:17:26,560
Backwards insurance.

273
00:17:26,560 --> 00:17:29,360
That's a good way to look at it.

274
00:17:29,360 --> 00:17:36,480
So any event that something does occur, let's just say that, okay, there was an HOA that

275
00:17:36,480 --> 00:17:39,440
was collecting money that was not found.

276
00:17:39,440 --> 00:17:42,640
So what happens at that point?

277
00:17:42,640 --> 00:17:45,560
We have different, we have two different policies.

278
00:17:45,560 --> 00:17:50,840
We have a standard policy and an enhanced policy, which is for a homeowner.

279
00:17:50,840 --> 00:17:55,520
Standard policies, you know, people who are purchasing investment properties, commercial

280
00:17:55,520 --> 00:18:00,120
properties, anything like that can purchase a standard policy.

281
00:18:00,120 --> 00:18:06,160
But these policies cover the owner from monetary loss if there are any title issues that are

282
00:18:06,160 --> 00:18:07,160
discovered.

283
00:18:07,160 --> 00:18:08,160
Gotcha.

284
00:18:08,160 --> 00:18:14,120
So if you do come across a title issue in the future that happened in the past, you

285
00:18:14,120 --> 00:18:20,880
would submit a claim to Fidelity National and they would take care of doing research

286
00:18:20,880 --> 00:18:27,960
for that attorney fees, legal representation so that you are not losing money to handle

287
00:18:27,960 --> 00:18:30,120
this claim.

288
00:18:30,120 --> 00:18:33,120
See, you know, I knew this.

289
00:18:33,120 --> 00:18:34,680
I told you when we started, right?

290
00:18:34,680 --> 00:18:39,160
What you guys do is way more than what people really think and really understand.

291
00:18:39,160 --> 00:18:42,880
And it's just, I don't know, it's boggling to me.

292
00:18:42,880 --> 00:18:47,880
So now that we have backwards insurance, that's good.

293
00:18:47,880 --> 00:18:49,840
I need a lot of that in my life.

294
00:18:49,840 --> 00:18:51,960
Can I get that for other areas, by the way?

295
00:18:51,960 --> 00:18:52,960
I know, right.

296
00:18:52,960 --> 00:18:53,960
That's brilliant.

297
00:18:53,960 --> 00:18:54,960
I'm gonna cash in.

298
00:18:54,960 --> 00:18:55,960
I'm just gonna tell you.

299
00:18:55,960 --> 00:18:56,960
So, all right.

300
00:18:56,960 --> 00:19:03,600
So you go through, you go through the search, everything's good and we have a clean title.

301
00:19:03,600 --> 00:19:05,120
What's a clean title mean?

302
00:19:05,120 --> 00:19:08,280
In your guys', in your world, what's a clean title mean?

303
00:19:08,280 --> 00:19:09,280
How's that?

304
00:19:09,280 --> 00:19:17,280
So, a clean or clear title means there are no liens on the property, there are no judgments

305
00:19:17,280 --> 00:19:21,160
filed in the buyers or the seller's name.

306
00:19:21,160 --> 00:19:23,600
There are no encroachments.

307
00:19:23,600 --> 00:19:29,000
It means that the borrower can take title free and clear with the clean owner's title

308
00:19:29,000 --> 00:19:30,000
policy.

309
00:19:30,000 --> 00:19:31,000
Okay.

310
00:19:31,000 --> 00:19:32,000
Awesome.

311
00:19:32,000 --> 00:19:35,880
And then your backwards insurance covers you in case something weird pops up in the

312
00:19:35,880 --> 00:19:36,880
future.

313
00:19:36,880 --> 00:19:37,880
Exactly.

314
00:19:37,880 --> 00:19:39,600
So, you go backwards to go forwards.

315
00:19:39,600 --> 00:19:40,600
I got it.

316
00:19:40,600 --> 00:19:41,600
I'm just kidding.

317
00:19:41,600 --> 00:19:43,600
Well, and it is though.

318
00:19:43,600 --> 00:19:50,040
I mean, it's very important because I mean, I've heard crazy stories and I know that you

319
00:19:50,040 --> 00:19:56,640
guys have crazy stories and I definitely want to hear about some of them by the way.

320
00:19:56,640 --> 00:20:00,920
But you know, you just, I mean, you never know, right?

321
00:20:00,920 --> 00:20:08,880
Things happen and we didn't always keep records and we have, we have homes that are hundreds

322
00:20:08,880 --> 00:20:10,560
of years old.

323
00:20:10,560 --> 00:20:15,840
And when you sell a home that's that old, we didn't always have records of everything.

324
00:20:15,840 --> 00:20:16,840
That's right.

325
00:20:16,840 --> 00:20:17,840
You don't always know.

326
00:20:17,840 --> 00:20:18,840
It used to be a handshake.

327
00:20:18,840 --> 00:20:19,840
It did.

328
00:20:19,840 --> 00:20:20,840
It used to be, you know?

329
00:20:20,840 --> 00:20:24,320
I mean, a little, little hawker and spit and handshake and there you got to do.

330
00:20:24,320 --> 00:20:25,800
Or deeds that weren't recorded.

331
00:20:25,800 --> 00:20:26,800
Yes.

332
00:20:26,800 --> 00:20:27,800
Pieces of paper.

333
00:20:27,800 --> 00:20:28,800
Yes.

334
00:20:28,800 --> 00:20:32,440
And we have people, you know, buyers all the time, like, oh, this is a new construction.

335
00:20:32,440 --> 00:20:35,080
Why would I need an owner's title insurance policy?

336
00:20:35,080 --> 00:20:40,600
And that land that new home is sitting on has had a title dating back for years and

337
00:20:40,600 --> 00:20:41,600
years.

338
00:20:41,600 --> 00:20:44,960
And that might not always be clear just because it's a brand new home.

339
00:20:44,960 --> 00:20:46,320
Doesn't mean the title is clear.

340
00:20:46,320 --> 00:20:50,680
I mean, that's right, you know, because it again, and we see it, right?

341
00:20:50,680 --> 00:20:58,640
There's masses of land that used to be farmed that were generations old that no longer are

342
00:20:58,640 --> 00:21:03,040
farmed in, in whatever generation has possession of it says, you know what?

343
00:21:03,040 --> 00:21:04,040
I don't want this land.

344
00:21:04,040 --> 00:21:05,040
I don't want to farm it.

345
00:21:05,040 --> 00:21:06,040
I don't want anything.

346
00:21:06,040 --> 00:21:07,320
I just want to sell it.

347
00:21:07,320 --> 00:21:12,520
And then, and then they sell it or maybe they subdivide it and, and there's all these things

348
00:21:12,520 --> 00:21:13,880
that can occur.

349
00:21:13,880 --> 00:21:18,960
So like you said, it's not just about the house.

350
00:21:18,960 --> 00:21:24,840
It's about the entire piece of property, about the, the land and goodness gracious, what

351
00:21:24,840 --> 00:21:25,840
was it?

352
00:21:25,840 --> 00:21:31,680
We just heard a story recently about somewhere they, they found artifacts and, and I think

353
00:21:31,680 --> 00:21:32,680
it was in Marival.

354
00:21:32,680 --> 00:21:36,520
I don't remember the whole story, but I don't know.

355
00:21:36,520 --> 00:21:38,200
It was like an antique show.

356
00:21:38,200 --> 00:21:43,880
And then they come to find out there was, it's now turned into an archeological dig

357
00:21:43,880 --> 00:21:45,360
and it's crazy, right?

358
00:21:45,360 --> 00:21:47,360
I mean, cause you just don't know.

359
00:21:47,360 --> 00:21:49,800
So anyway, sorry, there goes that rabbit hole.

360
00:21:49,800 --> 00:21:53,360
All right, listen, we are going to take a short break.

361
00:21:53,360 --> 00:21:58,520
If you've got questions or comments or concerns, feel free to give us a call, shoot us a text

362
00:21:58,520 --> 00:22:19,720
865-656-8255, we'll be right back here on Around the House on News Talk, WOKI.

363
00:22:19,720 --> 00:22:23,200
Welcome back to Around the House.

364
00:22:23,200 --> 00:22:30,160
Man, I'm just going to tell you the sunshine in that window in the studio this morning,

365
00:22:30,160 --> 00:22:33,780
it just, can we go outside Riley?

366
00:22:33,780 --> 00:22:36,720
Can we make this happen outside?

367
00:22:36,720 --> 00:22:38,240
I'm sure we can.

368
00:22:38,240 --> 00:22:43,000
I mean, without going with the whole remote route, you know, just drop a cord out the

369
00:22:43,000 --> 00:22:44,000
window.

370
00:22:44,000 --> 00:22:46,000
Yeah, yeah, whatever.

371
00:22:46,000 --> 00:22:48,120
Yeah, whatever.

372
00:22:48,120 --> 00:22:50,760
I know better than that.

373
00:22:50,760 --> 00:23:01,380
So titles, title insurance, title companies, all of the, well, fine details that happen

374
00:23:01,380 --> 00:23:05,560
in that transaction when you buy or sell a house.

375
00:23:05,560 --> 00:23:08,980
We have some professionals in the house with us this morning.

376
00:23:08,980 --> 00:23:14,920
We have Jeannie Davis, who is with Independence Title, and we have Joni Wilson, who is with

377
00:23:14,920 --> 00:23:17,560
Convenience Title.

378
00:23:17,560 --> 00:23:20,800
Please ladies, if you want to get ahold of them, the easiest way is just visit their

379
00:23:20,800 --> 00:23:23,520
websites for Independence Title.

380
00:23:23,520 --> 00:23:34,040
You can go to indietitle.net, that's I-N-D-Y, title.net, or you can find Joni at conveyancetitle.com,

381
00:23:34,040 --> 00:23:35,560
that's conveyancetitle.com.

382
00:23:35,560 --> 00:23:36,560
Welcome.

383
00:23:36,560 --> 00:23:37,560
Thank you.

384
00:23:37,560 --> 00:23:42,560
Glad you all are here this morning.

385
00:23:42,560 --> 00:23:43,560
I'm here.

386
00:23:43,560 --> 00:23:49,560
I know that, I mean, you guys get the crazy stuff in these transactions, really.

387
00:23:49,560 --> 00:23:54,920
I mean, everybody talks about the realtors and the home inspectors and the negotiations

388
00:23:54,920 --> 00:23:58,880
of the fixes, don't fix that and all that crazy, but you guys really get, you get the

389
00:23:58,880 --> 00:24:04,640
crazy of all of it, because you guys do the investigative work and find the weird stuff.

390
00:24:04,640 --> 00:24:05,640
Yes.

391
00:24:05,640 --> 00:24:06,640
Yeah, we do.

392
00:24:06,640 --> 00:24:10,520
And then we have to figure out how to explain that to people.

393
00:24:10,520 --> 00:24:15,960
So speaking of weird stuff, I know you all have some stories, and so when they come up,

394
00:24:15,960 --> 00:24:18,800
just blur them out, we'd love to hear them.

395
00:24:18,800 --> 00:24:23,920
So but when we have issues, we have things that need to be cleared.

396
00:24:23,920 --> 00:24:24,920
What do we do?

397
00:24:24,920 --> 00:24:27,120
How does, what's that process look like?

398
00:24:27,120 --> 00:24:31,280
I'm sure it depends on what the issue is, but what are some of the, what are some of

399
00:24:31,280 --> 00:24:36,720
the top five issues that occur regularly and what needs to be done to clear those up?

400
00:24:36,720 --> 00:24:39,000
Number one, unreleased deed of trust.

401
00:24:39,000 --> 00:24:40,960
Yes, definitely.

402
00:24:40,960 --> 00:24:43,520
So that always takes a little bit longer.

403
00:24:43,520 --> 00:24:49,720
So if there is an unreleased deed of trust or lean that, that we need to obtain, then

404
00:24:49,720 --> 00:24:52,680
we will work on requesting that right away.

405
00:24:52,680 --> 00:24:56,200
Sometimes that can take a couple of weeks to come in and we don't want the closing to

406
00:24:56,200 --> 00:24:59,000
be delayed because we don't have that back.

407
00:24:59,000 --> 00:25:01,320
So we will work on requesting that right away.

408
00:25:01,320 --> 00:25:02,320
Okay.

409
00:25:02,320 --> 00:25:05,200
So, so title one on one for dummies.

410
00:25:05,200 --> 00:25:08,240
What is, what is the release of deed of trust?

411
00:25:08,240 --> 00:25:09,240
Yeah.

412
00:25:09,240 --> 00:25:14,480
So whenever you take out a loan on a property, that lender will have a deed of trust recorded

413
00:25:14,480 --> 00:25:16,120
at the register of deeds.

414
00:25:16,120 --> 00:25:19,800
That gives the lender the authority to foreclose on the property if you don't pay back the

415
00:25:19,800 --> 00:25:22,920
money that you have borrowed from them.

416
00:25:22,920 --> 00:25:28,920
And so whenever you do pay off that mortgage, the lender is supposed to have recorded at

417
00:25:28,920 --> 00:25:33,240
the register of deeds a release for that deed of trust.

418
00:25:33,240 --> 00:25:38,640
So sometimes we get, you know, our title search back and our current owners had refinanced,

419
00:25:38,640 --> 00:25:43,200
they paid off a deed of trust and that last transaction, but there's no release recorded.

420
00:25:43,200 --> 00:25:46,640
So we'll request, we'll go ahead and request that.

421
00:25:46,640 --> 00:25:51,040
Sometimes though, there are owners two or three back in the chain of title and they're

422
00:25:51,040 --> 00:25:52,520
still an unreleased deed of trust.

423
00:25:52,520 --> 00:25:55,320
And that's a little trickier.

424
00:25:55,320 --> 00:25:58,920
So we go ahead and try to request from that lender.

425
00:25:58,920 --> 00:26:01,040
Sometimes that lender is no longer in business.

426
00:26:01,040 --> 00:26:05,320
Sometimes we have to just track people down that on the property 20 years ago.

427
00:26:05,320 --> 00:26:10,600
It just really just depends on what the document is.

428
00:26:10,600 --> 00:26:16,760
You guys are the true CSI and in this real estate transaction.

429
00:26:16,760 --> 00:26:19,440
I mean, you guys, you really are.

430
00:26:19,440 --> 00:26:24,120
You're, I mean, you're the ones that have to define and fix, I guess.

431
00:26:24,120 --> 00:26:26,160
Well, say what needs to be fixed.

432
00:26:26,160 --> 00:26:27,160
How's that?

433
00:26:27,160 --> 00:26:28,160
We call it super sleuthing.

434
00:26:28,160 --> 00:26:29,160
Super sleuthing.

435
00:26:29,160 --> 00:26:34,160
I feel a new show coming on, Riley.

436
00:26:34,160 --> 00:26:35,160
Super sleuthing.

437
00:26:35,160 --> 00:26:36,160
Sorry.

438
00:26:36,160 --> 00:26:37,160
There we go.

439
00:26:37,160 --> 00:26:38,160
All right.

440
00:26:38,160 --> 00:26:45,400
So, so we found a problem and, and so now we know what needs to be fixed.

441
00:26:45,400 --> 00:26:51,440
And so I'm assuming most of that stuff, you guys are doing the heavy lifting on to get

442
00:26:51,440 --> 00:26:55,120
whatever documents need to be received to clear this up.

443
00:26:55,120 --> 00:26:56,120
Is that right?

444
00:26:56,120 --> 00:26:57,120
Yes.

445
00:26:57,120 --> 00:26:58,120
Okay.

446
00:26:58,120 --> 00:27:01,880
So, I think that's good because I don't think anybody has to have a clue on super sleuthing

447
00:27:01,880 --> 00:27:04,040
on how to get in there and do that.

448
00:27:04,040 --> 00:27:08,000
So, and this is where the title insurance comes in though, right?

449
00:27:08,000 --> 00:27:09,000
Yes.

450
00:27:09,000 --> 00:27:14,080
So if something got missed or something slipped through the cracks and we didn't have super

451
00:27:14,080 --> 00:27:17,920
sleuths like y'all in the house doing our title search.

452
00:27:17,920 --> 00:27:22,000
So now our title insurance would, would come into play.

453
00:27:22,000 --> 00:27:23,840
Does that happen frequently?

454
00:27:23,840 --> 00:27:24,840
Yes.

455
00:27:24,840 --> 00:27:29,040
So whenever there is a title issue that we see back on the title report, our very first

456
00:27:29,040 --> 00:27:33,720
question, does the current owner have an owner's title insurance policy?

457
00:27:33,720 --> 00:27:41,600
A lot of times, I'm trying to think of a situation, old estates, you know, someone who died 40

458
00:27:41,600 --> 00:27:44,120
years ago, something like that, had a bunch of kids.

459
00:27:44,120 --> 00:27:48,000
Our very first question is going to be, do you have an owner's title insurance policy?

460
00:27:48,000 --> 00:27:54,200
A lot of times we can go ahead and move on with an owner's title, title insurance policy

461
00:27:54,200 --> 00:28:00,040
that did not take any exception to that estate issue in the past.

462
00:28:00,040 --> 00:28:04,200
So I, and I can, you know, I'm, I'm seeing this in my head finally.

463
00:28:04,200 --> 00:28:05,200
Sorry.

464
00:28:05,200 --> 00:28:06,200
I'm a little cloudy.

465
00:28:06,200 --> 00:28:07,200
I'm old.

466
00:28:07,200 --> 00:28:10,520
So, so, you know, somebody passes away.

467
00:28:10,520 --> 00:28:18,680
They will the property to whoever in the will and, and they take possession of that property

468
00:28:18,680 --> 00:28:21,040
and well, you know, I mean, it was grandpa's farm.

469
00:28:21,040 --> 00:28:28,360
So I just take possession and don't do any of the paperwork until, you know, somebody

470
00:28:28,360 --> 00:28:32,040
finds it in a transaction and a title search set.

471
00:28:32,040 --> 00:28:33,480
Is that sound fairly accurate?

472
00:28:33,480 --> 00:28:34,480
Does this happen?

473
00:28:34,480 --> 00:28:35,480
That does happen.

474
00:28:35,480 --> 00:28:36,480
Yes.

475
00:28:36,480 --> 00:28:37,480
That does happen.

476
00:28:37,480 --> 00:28:44,480
And well, when someone passes away, their airs automatically inherit property.

477
00:28:44,480 --> 00:28:49,600
There's not always a deed of record, but whenever that person goes to sell, we do have to track

478
00:28:49,600 --> 00:28:55,360
down, you know, see if a probate was filed, if they had a will, if they did not have a

479
00:28:55,360 --> 00:28:59,920
will disclose all the airs, get affidavit signed.

480
00:28:59,920 --> 00:29:03,960
And if that happened back in the chain of title and you did, you're the seller and you

481
00:29:03,960 --> 00:29:09,280
did not purchase an owner's title insurance policy, all those affidavits we have to record

482
00:29:09,280 --> 00:29:10,280
all of that.

483
00:29:10,280 --> 00:29:14,960
Those charges are going to be on your side of the settlement statement because it's your

484
00:29:14,960 --> 00:29:18,720
responsibility to provide that marketable title for the buyer.

485
00:29:18,720 --> 00:29:19,720
That sounds expensive.

486
00:29:19,720 --> 00:29:20,720
It can be.

487
00:29:20,720 --> 00:29:21,720
It can be.

488
00:29:21,720 --> 00:29:23,280
Just sounds expensive.

489
00:29:23,280 --> 00:29:24,480
So all right.

490
00:29:24,480 --> 00:29:27,520
So you guys have super sleuthed.

491
00:29:27,520 --> 00:29:31,640
We have a, we've got a clear title.

492
00:29:31,640 --> 00:29:33,480
We're ready to go.

493
00:29:33,480 --> 00:29:38,760
So what do I need to know to be prepared for closing day?

494
00:29:38,760 --> 00:29:46,720
So the first thing you will receive once your settlement agent, title agent, me or Joni

495
00:29:46,720 --> 00:29:51,280
has balanced with your lender or if it's a cash transaction, has your settlement statement

496
00:29:51,280 --> 00:29:53,600
prepared, they will send you that settlement statement.

497
00:29:53,600 --> 00:29:58,720
So you can review that and you will know if you're the buyer, the amount you need to bring

498
00:29:58,720 --> 00:30:07,560
to closing for your cash to close amount or if you're the seller, what your proceeds

499
00:30:07,560 --> 00:30:08,680
amount will be.

500
00:30:08,680 --> 00:30:16,680
So what you will be getting at the table for your transaction.

501
00:30:16,680 --> 00:30:23,360
And you also need, you need to have all of your questions answered as well by the time

502
00:30:23,360 --> 00:30:25,040
you get to the closing table.

503
00:30:25,040 --> 00:30:30,280
So it is our job to make sure that when you sit down at that closing table, all of your

504
00:30:30,280 --> 00:30:35,200
questions are answered that you are completely comfortable, that we have went over everything

505
00:30:35,200 --> 00:30:37,960
with you and that you understand everything.

506
00:30:37,960 --> 00:30:42,520
There are a lot of first time home buyers that are purchasing homes right now.

507
00:30:42,520 --> 00:30:46,000
There are a lot of people selling homes that don't understand the process.

508
00:30:46,000 --> 00:30:49,680
And it's our job to explain everything to them.

509
00:30:49,680 --> 00:30:56,880
I can't tell you how many times I've worked with people, especially recently that have,

510
00:30:56,880 --> 00:31:01,360
when I've explained things to them, have almost been shocked because they've worked

511
00:31:01,360 --> 00:31:05,800
with somebody previously and said, you know, they weren't explained anything or they weren't

512
00:31:05,800 --> 00:31:07,560
communicated to.

513
00:31:07,560 --> 00:31:13,440
And so it's our job to make them feel comfortable when they sit down at that closing table.

514
00:31:13,440 --> 00:31:17,960
And when I'm telling you, when you come out with that stack of paper, that makes anybody

515
00:31:17,960 --> 00:31:18,960
nervous.

516
00:31:18,960 --> 00:31:23,520
I'm just going to tell you, I mean, because nobody's, you know, nobody's read through

517
00:31:23,520 --> 00:31:24,520
it all, right?

518
00:31:24,520 --> 00:31:25,520
You know what I mean?

519
00:31:25,520 --> 00:31:30,520
I mean, let's face it, we're in a world today that when you go sign up for whatever it is,

520
00:31:30,520 --> 00:31:32,000
you just click that box.

521
00:31:32,000 --> 00:31:33,320
Yes, I agree.

522
00:31:33,320 --> 00:31:36,600
And nobody reads any of it, you know?

523
00:31:36,600 --> 00:31:42,040
And you guys, you deal with, well, kind of the fallout when nobody reads it.

524
00:31:42,040 --> 00:31:43,040
Yes.

525
00:31:43,040 --> 00:31:46,040
I mean, sometimes it's worse than others.

526
00:31:46,040 --> 00:31:48,000
Well, I can imagine that.

527
00:31:48,000 --> 00:31:49,400
I can imagine that.

528
00:31:49,400 --> 00:31:57,920
So when I come in to sign my documents, I'm doing my closing.

529
00:31:57,920 --> 00:31:59,520
What do I need to know?

530
00:31:59,520 --> 00:32:04,280
What should I be prepared for other than, you know, make sure I've done some wrist exercises

531
00:32:04,280 --> 00:32:06,760
so I can get all them signatures done?

532
00:32:06,760 --> 00:32:07,760
Yes.

533
00:32:07,760 --> 00:32:10,760
And during closing, if you have a loan package, we allow you time to stretch.

534
00:32:10,760 --> 00:32:13,840
You know, if you need to take a break, things like that.

535
00:32:13,840 --> 00:32:15,640
That's good to know.

536
00:32:15,640 --> 00:32:18,480
No, it's really not that bad.

537
00:32:18,480 --> 00:32:23,960
If you are paying cash for a property, you would expect to spend 20 minutes with us.

538
00:32:23,960 --> 00:32:26,160
Go through the documents.

539
00:32:26,160 --> 00:32:30,720
If you have a loan, of course, you're going to spend more like 45 minutes or an hour with

540
00:32:30,720 --> 00:32:31,720
us.

541
00:32:31,720 --> 00:32:37,760
If this is your first time buying a home, we really will go through every document, make

542
00:32:37,760 --> 00:32:43,400
sure you understand, you know, how payments are applied to your loan, what is escrow,

543
00:32:43,400 --> 00:32:45,800
you know, that kind of thing.

544
00:32:45,800 --> 00:32:47,560
And we do call it cash to close.

545
00:32:47,560 --> 00:32:53,840
And in the past, we have had people show up with cash, do not bring cash to closing.

546
00:32:53,840 --> 00:32:59,680
We need to have certified funds, so wires, cashier's checks, no personal checks, things

547
00:32:59,680 --> 00:33:00,680
like that.

548
00:33:00,680 --> 00:33:02,840
And not everybody knows that.

549
00:33:02,840 --> 00:33:07,560
That is something that you should know before coming to closing.

550
00:33:07,560 --> 00:33:12,000
And especially, we've had a lot of people who are coming from out of state, and they're

551
00:33:12,000 --> 00:33:13,880
purchasing here.

552
00:33:13,880 --> 00:33:19,040
And they're not aware that, hey, contact your bank before you leave the state that you're

553
00:33:19,040 --> 00:33:20,520
currently living in.

554
00:33:20,520 --> 00:33:23,120
See how that cash to close is going to work.

555
00:33:23,120 --> 00:33:28,320
We don't want you coming to closing, and the bank can't get you money for another week.

556
00:33:28,320 --> 00:33:33,040
A lot of, you know, just situations, every single transaction is a little different.

557
00:33:33,040 --> 00:33:36,280
So we tailor the experience to the client.

558
00:33:36,280 --> 00:33:41,280
And I mean, it is, I mean, every single one is going to be different.

559
00:33:41,280 --> 00:33:45,760
And it's just like, I mean, I've bought several houses, but every house I bought has been

560
00:33:45,760 --> 00:33:46,760
different.

561
00:33:46,760 --> 00:33:50,640
And the emotional attachment in the process has been different.

562
00:33:50,640 --> 00:33:56,320
And you know, and you guys, I mean, you're right there, you're the finish line, you know?

563
00:33:56,320 --> 00:34:01,800
And so those emotions are either they're running high, whether they're on the good side or

564
00:34:01,800 --> 00:34:03,480
the bad side.

565
00:34:03,480 --> 00:34:09,520
And I know that you guys have to, well, sometimes be the, be the referee or counselors, but

566
00:34:09,520 --> 00:34:10,520
anyway.

567
00:34:10,520 --> 00:34:11,520
That is very true.

568
00:34:11,520 --> 00:34:16,800
That's where the super sleuthin' comes in, you know how to handle it.

569
00:34:16,800 --> 00:34:17,800
Oh, Lord.

570
00:34:17,800 --> 00:34:19,760
Well, we are going to take a short break.

571
00:34:19,760 --> 00:34:23,960
We're going to come back and we're going to wrap up our closing.

572
00:34:23,960 --> 00:34:29,600
And we are, well, going to be presented with keys or the keyless access code or whatever

573
00:34:29,600 --> 00:34:33,320
it is to get you into that new house that you just bought.

574
00:34:33,320 --> 00:34:50,640
And I'm right back with us here on Around the House News Talk 97 WOKI.

575
00:34:50,640 --> 00:34:53,280
Welcome back to Around the House.

576
00:34:53,280 --> 00:34:56,960
And I just want to say congratulations.

577
00:34:56,960 --> 00:34:58,800
It's closing day.

578
00:34:58,800 --> 00:35:00,920
We're going to the closing table.

579
00:35:00,920 --> 00:35:01,920
Woohoo.

580
00:35:01,920 --> 00:35:07,680
Our super, our super sleuths have got our title all ready to go.

581
00:35:07,680 --> 00:35:08,680
We're clear.

582
00:35:08,680 --> 00:35:09,680
We're ready.

583
00:35:09,680 --> 00:35:18,600
We've got Jeannie Davis from Independence Title and Joanie Wilson from Conveyance Title.

584
00:35:18,600 --> 00:35:22,720
So both these ladies have worked together for years.

585
00:35:22,720 --> 00:35:25,720
In fact, I'm just going to tell you they're a hoot right now.

586
00:35:25,720 --> 00:35:29,000
I've just, I have really enjoyed this morning.

587
00:35:29,000 --> 00:35:32,320
But anything title, they can definitely help you out.

588
00:35:32,320 --> 00:35:38,440
So when you're in need for your title company, just remember Independence Title, Conveyance

589
00:35:38,440 --> 00:35:42,280
Title, great options for you.

590
00:35:42,280 --> 00:35:44,280
So we're going to close.

591
00:35:44,280 --> 00:35:45,920
Before we close, we got one last thing.

592
00:35:45,920 --> 00:35:53,360
So they're cash closing and a loan closing other than in about 20 minutes of paperwork.

593
00:35:53,360 --> 00:35:58,280
I'm sure there's a lot of differences, but I'm sure there's a lot of similarities.

594
00:35:58,280 --> 00:36:01,920
Any big major pitfalls that we would need to look at between the differences of those

595
00:36:01,920 --> 00:36:02,920
two.

596
00:36:02,920 --> 00:36:10,880
The basic main thing is when a loan closing is when you work with a lender to obtain financing

597
00:36:10,880 --> 00:36:12,840
to purchase your home.

598
00:36:12,840 --> 00:36:20,560
A cash closing is when you have the funds to purchase without using a lender.

599
00:36:20,560 --> 00:36:22,680
Pretty simple.

600
00:36:22,680 --> 00:36:24,120
Pretty simple.

601
00:36:24,120 --> 00:36:25,720
Saves you about 20 minutes of paperwork.

602
00:36:25,720 --> 00:36:26,720
At least.

603
00:36:26,720 --> 00:36:29,520
Yeah, and about, well, at least 15 years in payments.

604
00:36:29,520 --> 00:36:30,520
So there you go.

605
00:36:30,520 --> 00:36:31,520
Lots of interest.

606
00:36:31,520 --> 00:36:32,520
There you go.

607
00:36:32,520 --> 00:36:33,520
Right.

608
00:36:33,520 --> 00:36:34,520
So good things to know.

609
00:36:34,520 --> 00:36:35,520
All right.

610
00:36:35,520 --> 00:36:36,520
So closing table.

611
00:36:36,520 --> 00:36:37,520
We're here.

612
00:36:37,520 --> 00:36:42,040
I learned that the most popular thing to do now is apparently keep the parties separated

613
00:36:42,040 --> 00:36:43,040
during closing.

614
00:36:43,040 --> 00:36:44,540
I'm old fashioned.

615
00:36:44,540 --> 00:36:45,540
I don't like it.

616
00:36:45,540 --> 00:36:47,680
I don't get it, but it is what it is.

617
00:36:47,680 --> 00:36:49,520
So I've come in.

618
00:36:49,520 --> 00:36:51,840
You guys have gone through all my documentations.

619
00:36:51,840 --> 00:36:53,240
I've signed all the papers.

620
00:36:53,240 --> 00:36:54,880
Now, what do I do?

621
00:36:54,880 --> 00:36:57,480
Well, we like to have all the parties together.

622
00:36:57,480 --> 00:36:58,480
I do too.

623
00:36:58,480 --> 00:37:02,480
I know during COVID we had to keep everybody separate, but now we've kind of started bringing

624
00:37:02,480 --> 00:37:05,480
everybody back together and it's a lot of fun.

625
00:37:05,480 --> 00:37:11,040
And I feel like at the end of the signing, we should have a confetti and streamers like

626
00:37:11,040 --> 00:37:13,040
yay, we did it.

627
00:37:13,040 --> 00:37:17,920
But sadly, we don't have that.

628
00:37:17,920 --> 00:37:23,840
Now you have great things to put in what we can do to improve box at the office.

629
00:37:23,840 --> 00:37:25,320
Like a balloon drop.

630
00:37:25,320 --> 00:37:26,320
Yeah.

631
00:37:26,320 --> 00:37:27,320
Yeah.

632
00:37:27,320 --> 00:37:31,200
Since I wanted to clean all that mess up afterwards, because I am not doing it.

633
00:37:31,200 --> 00:37:32,680
Oh, goodness.

634
00:37:32,680 --> 00:37:34,720
All right.

635
00:37:34,720 --> 00:37:41,120
So how do I know that the property has been put in my name and all that stuff after my

636
00:37:41,120 --> 00:37:42,120
closing is done?

637
00:37:42,120 --> 00:37:46,280
Because there's a lot of work that goes in afterwards that, well, quite frankly, I'm

638
00:37:46,280 --> 00:37:50,520
just going to go and join my new home and kind of forget about.

639
00:37:50,520 --> 00:37:51,520
Yeah.

640
00:37:51,520 --> 00:37:54,480
So I'm sure buyers and sellers leave the closing table.

641
00:37:54,480 --> 00:37:56,840
Title still has a lot of work to do.

642
00:37:56,840 --> 00:38:00,200
If it's a cash transaction, it's really simple.

643
00:38:00,200 --> 00:38:02,600
We make sure all the money is correct.

644
00:38:02,600 --> 00:38:07,880
We record the warranty deed and go ahead and issue that title insurance policy, get you

645
00:38:07,880 --> 00:38:09,280
copies of everything.

646
00:38:09,280 --> 00:38:12,040
So that is a pretty simple process.

647
00:38:12,040 --> 00:38:19,680
If there's a loan involved, we typically have to request funding authorization from the lender,

648
00:38:19,680 --> 00:38:24,280
make sure that all of their documents are accurate, have their sign, how they like.

649
00:38:24,280 --> 00:38:28,240
And then once we have authorization from this lender who is lending all this money so you

650
00:38:28,240 --> 00:38:33,600
can buy this property, then we can go ahead, record that warranty deed very first, and

651
00:38:33,600 --> 00:38:40,400
then we'll record that deed of trust, and then issue title insurance policy and get copies

652
00:38:40,400 --> 00:38:42,080
of everything out to you.

653
00:38:42,080 --> 00:38:46,320
So immediately after closing though, everyone will get an email saying, congratulations,

654
00:38:46,320 --> 00:38:51,160
you are closed, and not long after that, should be less than two weeks typically, you will

655
00:38:51,160 --> 00:38:56,200
get your recorded warranty deed at your mailing address with your title insurance policy.

656
00:38:56,200 --> 00:38:57,200
Wow.

657
00:38:57,200 --> 00:39:02,320
I'm just going to say, it sounds like you guys kind of get to short and stick here.

658
00:39:02,320 --> 00:39:04,840
It sounds like you do a lot of work in this process.

659
00:39:04,840 --> 00:39:05,840
We do.

660
00:39:05,840 --> 00:39:06,840
We really do.

661
00:39:06,840 --> 00:39:11,000
I mean, look, everybody involved in this process has a lot of work to do.

662
00:39:11,000 --> 00:39:17,200
Okay, I mean, anywhere from mortgage to the realtor to the home inspectors, I mean, all

663
00:39:17,200 --> 00:39:22,480
the way down the line, because again, as we have mentioned, and we will continue to mention,

664
00:39:22,480 --> 00:39:31,440
this is the second most emotional process or situation that you will encounter in your

665
00:39:31,440 --> 00:39:33,040
life.

666
00:39:33,040 --> 00:39:36,840
And so buying a house is very emotional.

667
00:39:36,840 --> 00:39:40,200
And it should be because, well, let's face it.

668
00:39:40,200 --> 00:39:42,040
That's the American dream, right?

669
00:39:42,040 --> 00:39:43,040
Yeah.

670
00:39:43,040 --> 00:39:44,040
Own a home.

671
00:39:44,040 --> 00:39:46,880
Sometimes it's the biggest thing someone's ever going to do in their life.

672
00:39:46,880 --> 00:39:50,120
It's incredibly important, and that is not missed on us.

673
00:39:50,120 --> 00:39:51,120
Yeah.

674
00:39:51,120 --> 00:39:52,120
I mean, it is.

675
00:39:52,120 --> 00:39:55,280
It's the largest purchase anybody will ever make.

676
00:39:55,280 --> 00:39:56,920
So it's very important.

677
00:39:56,920 --> 00:40:01,120
Well, I thank you, ladies, very much for joining me this morning.

678
00:40:01,120 --> 00:40:11,960
And Jeannie Davis with Independence Title and you can find them at indytitle.net and Joanie

679
00:40:11,960 --> 00:40:14,760
Wilson with Conveyance Title.

680
00:40:14,760 --> 00:40:19,960
And you can find her at conveyancetitle.com.

681
00:40:19,960 --> 00:40:24,600
Thank you again very, very much for helping us through that process.

682
00:40:24,600 --> 00:40:32,800
And as we have added into Around the House, we are to, well, one of my favorite parts,

683
00:40:32,800 --> 00:40:34,880
and that's the topic of the day.

684
00:40:34,880 --> 00:40:40,160
So before we take a break, we're going to talk about it because technically it's tomorrow,

685
00:40:40,160 --> 00:40:44,960
but I want to take a moment to talk about Father's Day being a dad.

686
00:40:44,960 --> 00:40:46,760
Well, it kind of changed during COVID, right?

687
00:40:46,760 --> 00:40:52,400
A lot of people, if they work, they work from home, found themselves spending more time with

688
00:40:52,400 --> 00:40:59,320
their kids, yay, not everybody has the benefit to kind of just spend the time that they want

689
00:40:59,320 --> 00:41:00,960
to.

690
00:41:00,960 --> 00:41:06,960
But one of the things that really kind of exploded was, well, one of my favorites, dad

691
00:41:06,960 --> 00:41:07,960
jokes.

692
00:41:07,960 --> 00:41:10,720
I mean, who doesn't love a good dad joke, right?

693
00:41:10,720 --> 00:41:16,720
So but, but I just want to tell you, I just, I got to pause and really talk about the importance

694
00:41:16,720 --> 00:41:18,880
of Father's Day.

695
00:41:18,880 --> 00:41:23,840
I'm sure many of people like me, my, my relationship with my father wasn't always great, but I

696
00:41:23,840 --> 00:41:32,040
am happy to say he just left actually, he was just here this week and he comes up from

697
00:41:32,040 --> 00:41:39,880
Florida every year as we play in the annual Home Builders Golf, Home Owners, Home Owners,

698
00:41:39,880 --> 00:41:43,320
I can't even talk now, Home Builders Association Golf Tournament.

699
00:41:43,320 --> 00:41:49,440
This was our eighth year, I think, participating and he turns 80 this year.

700
00:41:49,440 --> 00:41:57,680
So it's just, it's so nice now when I get to spend time with my dad, it just is.

701
00:41:57,680 --> 00:42:03,720
Our relationship is, is really quite amazing and I just want you to know, I know a lot

702
00:42:03,720 --> 00:42:08,480
of folks who are listening this morning, they don't have that opportunity.

703
00:42:08,480 --> 00:42:15,680
Their father is, is past and well, you know, I just want you to know if your father is

704
00:42:15,680 --> 00:42:23,320
still alive, is still living, take the time, call them, text them, whatever it is, because

705
00:42:23,320 --> 00:42:28,520
I'm just going to tell you, it took me a long time to learn how important it was to have

706
00:42:28,520 --> 00:42:30,440
that relationship with my dad.

707
00:42:30,440 --> 00:42:37,160
And I'm so glad that I finally pulled my head out of my rear end long enough to let bygones

708
00:42:37,160 --> 00:42:42,920
be bygones, let whatever the past was to be the past and move on and have an awesome loving

709
00:42:42,920 --> 00:42:44,440
relationship with my dad.

710
00:42:44,440 --> 00:42:49,680
So, pops, I know you're not listening, but if you do pick this podcast up sometime, I

711
00:42:49,680 --> 00:42:54,400
love you man, you're, you're amazing and I appreciate you.

712
00:42:54,400 --> 00:43:01,920
So that's my tribute to my dad and, but I would be remiss if I didn't leave without

713
00:43:01,920 --> 00:43:03,320
at least one dad joke.

714
00:43:03,320 --> 00:43:04,320
Okay.

715
00:43:04,320 --> 00:43:11,960
So, when does a joke become a dad joke?

716
00:43:11,960 --> 00:43:17,840
Riley, when it becomes apparent.

717
00:43:17,840 --> 00:43:20,080
Oh my God.

718
00:43:20,080 --> 00:43:21,680
All right.

719
00:43:21,680 --> 00:43:26,120
So listen, when we come back, we're going to finish talking about Father's Day.

720
00:43:26,120 --> 00:43:29,080
If you've got a great dad joke, we want to hear it.

721
00:43:29,080 --> 00:43:30,080
Give us a call.

722
00:43:30,080 --> 00:43:31,080
Give us a text.

723
00:43:31,080 --> 00:43:34,080
865-656-8255.

724
00:43:34,080 --> 00:43:44,800
We will be right back with the best dad jokes in town here on Around the House on News Talk

725
00:43:44,800 --> 00:44:02,600
987 WOKI.

726
00:44:02,600 --> 00:44:05,880
Good morning and welcome back to Around the House.

727
00:44:05,880 --> 00:44:14,760
I hope you enjoyed our guest this morning, Joni Wilson from Convenience Title and Jeannie

728
00:44:14,760 --> 00:44:21,520
Davis with Independence Title as we were talking about making sure you're covered through the

729
00:44:21,520 --> 00:44:24,960
closing process of that new home.

730
00:44:24,960 --> 00:44:31,680
And so thank you ladies for joining us this morning and, and enlightening us in, well,

731
00:44:31,680 --> 00:44:35,800
kind of what you guys do as we figured it out that they're the super sleuths in the

732
00:44:35,800 --> 00:44:37,600
real estate process.

733
00:44:37,600 --> 00:44:44,360
So our topic of the day, even though it's not officially today, it's tomorrow, it's

734
00:44:44,360 --> 00:44:46,840
Father's Day.

735
00:44:46,840 --> 00:44:51,000
That is our official topic of the day today.

736
00:44:51,000 --> 00:44:56,560
And before we left, as I mentioned, I'm very grateful for my relationship with my dad.

737
00:44:56,560 --> 00:45:03,840
And of course, we put out the call for dad jokes, and I'm sure everybody has a good

738
00:45:03,840 --> 00:45:06,520
dad joke that they would want to share.

739
00:45:06,520 --> 00:45:15,360
So you can do that at 865-656-8255, call or text, either way, we would love to hear from

740
00:45:15,360 --> 00:45:17,200
you.

741
00:45:17,200 --> 00:45:21,360
So back to the dad jokes.

742
00:45:21,360 --> 00:45:23,560
I mean, let's just face it.

743
00:45:23,560 --> 00:45:25,040
I love a good dad joke.

744
00:45:25,040 --> 00:45:26,840
I just do.

745
00:45:26,840 --> 00:45:32,840
But one of the things I enjoy most is just being a dad.

746
00:45:32,840 --> 00:45:42,400
I've got two wonderful, amazing daughters that are very unique in their own ways.

747
00:45:42,400 --> 00:45:48,920
And I'm just going to tell you, you know, you can, we see all these memes and shirts

748
00:45:48,920 --> 00:45:57,440
and everything else, but I just the best name that I've ever been called is dad.

749
00:45:57,440 --> 00:45:59,560
And man, I love them girls.

750
00:45:59,560 --> 00:46:01,640
I love my girls to death.

751
00:46:01,640 --> 00:46:06,520
And I'm so proud of them, even just at the very young ages that they are.

752
00:46:06,520 --> 00:46:08,960
They are such amazing young ladies.

753
00:46:08,960 --> 00:46:16,920
And I can't think of anything else that I'd rather do than be a dad, just to say, I just

754
00:46:16,920 --> 00:46:19,840
can't think of anything better.

755
00:46:19,840 --> 00:46:29,320
So with that being said, speaking of dads, I have a great dad visiting us right now.

756
00:46:29,320 --> 00:46:34,840
And Mr. Chris Knight from William Knight Insurance.

757
00:46:34,840 --> 00:46:38,400
And speaking of William Knight Insurance, William is your dad.

758
00:46:38,400 --> 00:46:39,400
That's correct.

759
00:46:39,400 --> 00:46:40,400
He is.

760
00:46:40,400 --> 00:46:41,400
So you're dead.

761
00:46:41,400 --> 00:46:42,400
He's a hoot.

762
00:46:42,400 --> 00:46:43,400
He's a hoot.

763
00:46:43,400 --> 00:46:45,080
I love seeing him down there at him's softball games.

764
00:46:45,080 --> 00:46:48,800
Well, I just warm, warm my heart, warm my heart.

765
00:46:48,800 --> 00:46:56,920
So, all right, as we continue on with the celebration of home ownership month, let's

766
00:46:56,920 --> 00:47:00,120
just talk a little bit about what's going on today.

767
00:47:00,120 --> 00:47:01,120
Right?

768
00:47:01,120 --> 00:47:05,960
Hey, real quick before we go, Riley, I got a joke for you.

769
00:47:05,960 --> 00:47:07,680
What did the, the better than last one?

770
00:47:07,680 --> 00:47:11,720
It is not, it is not, no, it's not any better.

771
00:47:11,720 --> 00:47:16,320
What did the Buffalo say when his boy went off to college?

772
00:47:16,320 --> 00:47:18,040
What did he say?

773
00:47:18,040 --> 00:47:19,040
Bye son.

774
00:47:19,040 --> 00:47:23,040
See, I mean, come on.

775
00:47:23,040 --> 00:47:25,560
You, I mean, you can't beat a dad joke.

776
00:47:25,560 --> 00:47:27,640
I'm just, I'm just telling you.

777
00:47:27,640 --> 00:47:29,440
Oh, I love it.

778
00:47:29,440 --> 00:47:30,720
I love it.

779
00:47:30,720 --> 00:47:35,080
Our softball team loves when we do our dad jokes, by the way.

780
00:47:35,080 --> 00:47:42,800
So, hey, why is Cinderella not a good softball player?

781
00:47:42,800 --> 00:47:47,120
She's only got one shoe.

782
00:47:47,120 --> 00:47:49,680
Because she always runs away from the ball.

783
00:47:49,680 --> 00:47:52,200
All right, there we go.

784
00:47:52,200 --> 00:47:53,360
Moving on, moving on.

785
00:47:53,360 --> 00:47:58,160
All right, listen, if you're looking for something to do today, don't forget, 7 p.m.

786
00:47:58,160 --> 00:48:05,000
tonight, our baseballs are in Omaha in the college world series, first pitch, seven o'clock

787
00:48:05,000 --> 00:48:06,960
against LSU.

788
00:48:06,960 --> 00:48:08,600
Game will be on ESPN.

789
00:48:08,600 --> 00:48:14,440
And of course, you can catch the call by John Wilkerson here on our sister station,

790
00:48:14,440 --> 00:48:16,360
WNML, the sports animal.

791
00:48:16,360 --> 00:48:21,920
If your dads want to take the kids to the zoo this weekend, Zoo Knoxville has 22 animatronic

792
00:48:21,920 --> 00:48:27,160
dinosaurs scattered among the exhibits, telling a story that's millions of years into making.

793
00:48:27,160 --> 00:48:31,800
Or if you want a good score, good scare, I Am's Nature Center is showing a double feature

794
00:48:31,800 --> 00:48:36,240
tonight under the stars to blur which project and tear her into woods.

795
00:48:36,240 --> 00:48:38,920
Gates open at seven and the movie starts at sundown.

796
00:48:38,920 --> 00:48:45,000
For more information on all the events happening around town today, go to visit Knoxville.com.

797
00:48:45,000 --> 00:48:47,240
That's visit Knoxville.com.

798
00:48:47,240 --> 00:48:52,080
So as we continue our conversation for National Homeownership Month, with the look of protecting

799
00:48:52,080 --> 00:48:58,160
your home and financial investment, my next guest is, well, my insurance agent, Mr. Chris

800
00:48:58,160 --> 00:49:02,680
Knight from William Knight Insurance Agency, Chris, welcome.

801
00:49:02,680 --> 00:49:04,160
Well, thanks for having me, Scott.

802
00:49:04,160 --> 00:49:07,800
It's always a pleasure to come down to the 98.7 studio.

803
00:49:07,800 --> 00:49:11,320
I've been here a couple of times when Dawn had her show.

804
00:49:11,320 --> 00:49:12,320
Yeah.

805
00:49:12,320 --> 00:49:18,600
It's always fun to get up early and make the trek down and spend a little time.

806
00:49:18,600 --> 00:49:19,600
Yes, sir.

807
00:49:19,600 --> 00:49:23,680
Well, hey, at least it was a beautiful morning to come and make that trek.

808
00:49:23,680 --> 00:49:26,800
So, you know, I love that.

809
00:49:26,800 --> 00:49:33,080
So, tell me a little bit about, I know, but tell our listeners about William Knight Insurance

810
00:49:33,080 --> 00:49:34,080
Agency.

811
00:49:34,080 --> 00:49:36,840
Well, my father started the agency in 1977.

812
00:49:36,840 --> 00:49:42,920
I was in high school at that time and he had already had a long career in insurance and

813
00:49:42,920 --> 00:49:45,800
he decided an opportunity came along for him to start his own agency.

814
00:49:45,800 --> 00:49:49,040
So he did and it just kind of steadily grew.

815
00:49:49,040 --> 00:49:51,960
I joined the agency in 2001.

816
00:49:51,960 --> 00:49:55,280
I had been in the landscaping and lawn sprinkler business.

817
00:49:55,280 --> 00:50:01,480
And I woke up one spring morning and it was already hot and dry and hadn't rained like

818
00:50:01,480 --> 00:50:03,200
it is right now.

819
00:50:03,200 --> 00:50:07,760
And the ground was hard and I said, there's got to be a better way to make, easier way

820
00:50:07,760 --> 00:50:10,320
to make a living.

821
00:50:10,320 --> 00:50:15,080
So I walked in his office one day and I said, I think I want to join the insurance agency.

822
00:50:15,080 --> 00:50:18,600
And he said, well, son, go get your license and come back and see me.

823
00:50:18,600 --> 00:50:21,240
So he had a great operations manager.

824
00:50:21,240 --> 00:50:26,960
Everything was Peggy and Peggy, Peggy helped me get my license and that was 21 years ago

825
00:50:26,960 --> 00:50:29,240
now or 22, I guess.

826
00:50:29,240 --> 00:50:31,160
And it's been a blast.

827
00:50:31,160 --> 00:50:32,160
It's been a blast.

828
00:50:32,160 --> 00:50:33,160
Yeah.

829
00:50:33,160 --> 00:50:39,280
Well, I can, I mean, I can, I could just imagine the conversation with your dad, you know,

830
00:50:39,280 --> 00:50:41,240
what little bit I know him.

831
00:50:41,240 --> 00:50:44,680
I could, yeah, I could definitely see him.

832
00:50:44,680 --> 00:50:49,160
Nothing is going to come easy just because you're in the family doesn't mean you're getting

833
00:50:49,160 --> 00:50:50,480
any special treatment.

834
00:50:50,480 --> 00:50:52,680
No, and my son's in the business now too.

835
00:50:52,680 --> 00:50:57,080
So, so that's kind of, it's kind of interesting, you know, to be a parent and have your children

836
00:50:57,080 --> 00:50:59,000
work for you.

837
00:50:59,000 --> 00:51:00,000
And it's tough.

838
00:51:00,000 --> 00:51:04,360
It is, it's, you know, to try to, to try to be the boss and be the mentor and be the

839
00:51:04,360 --> 00:51:05,960
father all at the same time.

840
00:51:05,960 --> 00:51:06,960
Yeah.

841
00:51:06,960 --> 00:51:09,240
Sometimes it can, sometimes it can be a challenge.

842
00:51:09,240 --> 00:51:18,120
You know, I'm sure, I'm sure that and I, I shared a small stint working with my father.

843
00:51:18,120 --> 00:51:21,000
I retired from the automotive industry.

844
00:51:21,000 --> 00:51:22,000
I'll say retired.

845
00:51:22,000 --> 00:51:27,400
I got out and, and dad was doing what a lot of folks who move here do.

846
00:51:27,400 --> 00:51:33,160
He pre-tired, left his career and he said, Hey son, I'm going to buy a lawn business.

847
00:51:33,160 --> 00:51:35,360
Do you want to help?

848
00:51:35,360 --> 00:51:40,200
And so we lived in Southwest Florida and so it was nice and cool, right?

849
00:51:40,200 --> 00:51:41,200
All year long.

850
00:51:41,200 --> 00:51:42,200
Ha.

851
00:51:42,200 --> 00:51:45,160
And I'm like, sure dad, let's do it.

852
00:51:45,160 --> 00:51:48,720
And we worked together for about a year and a half and it's funny because everybody thought

853
00:51:48,720 --> 00:51:50,360
this is not going to work well.

854
00:51:50,360 --> 00:51:52,560
This is not going to turn out well.

855
00:51:52,560 --> 00:51:57,160
And it, it enhanced our relationship tremendously.

856
00:51:57,160 --> 00:52:04,040
I know that I gained a new respect for my father through working with him.

857
00:52:04,040 --> 00:52:10,040
And I think it allowed us to, well, work through some of my daddy issues, I guess we'll just

858
00:52:10,040 --> 00:52:12,440
call it what it is.

859
00:52:12,440 --> 00:52:17,520
And so, you know, there's a lot of positives that can come from that, but I also know at

860
00:52:17,520 --> 00:52:24,680
the same time, um, his, his expectation for me was a little different than, than some

861
00:52:24,680 --> 00:52:27,200
of the other guys that were on the crew.

862
00:52:27,200 --> 00:52:29,160
And, uh, but I'm grateful for that.

863
00:52:29,160 --> 00:52:30,160
Yeah.

864
00:52:30,160 --> 00:52:31,160
I would agree.

865
00:52:31,160 --> 00:52:32,160
It's always working family.

866
00:52:32,160 --> 00:52:36,560
I worked with my, my brothers, uh, when I was in the early in my career, when I was in

867
00:52:36,560 --> 00:52:41,240
the lawn and in irrigation business, my brother worked with me and, and my other brother,

868
00:52:41,240 --> 00:52:45,000
I had, there was four boys in our family and I had another brother that worked with us

869
00:52:45,000 --> 00:52:46,000
some too.

870
00:52:46,000 --> 00:52:51,000
And, uh, you kind of, it's, it's really, you have to be really careful because you could

871
00:52:51,000 --> 00:52:56,040
expect more of your family than you can of the, you know, just an employee and, uh,

872
00:52:56,040 --> 00:52:59,240
yeah, and it can, it can, it can be a challenge.

873
00:52:59,240 --> 00:53:01,040
It can, it can.

874
00:53:01,040 --> 00:53:08,000
And, and I think, I think most will look back in hindsight and, and really see the true

875
00:53:08,000 --> 00:53:09,560
blessing that comes from it.

876
00:53:09,560 --> 00:53:11,120
It's hard to see when you're in it, right?

877
00:53:11,120 --> 00:53:18,320
But, uh, but I'm sure just as your, your dad looks back on where you're at in your career

878
00:53:18,320 --> 00:53:25,040
and, and with the insurance agency that, um, I am without a doubt sure that your, your

879
00:53:25,040 --> 00:53:30,120
dad is over the moon proud with, uh, what you have done you and your boys.

880
00:53:30,120 --> 00:53:35,760
So, uh, I know we haven't really talked much about insurance, but we, we have talked a

881
00:53:35,760 --> 00:53:39,640
little bit about Chris Knight and, and his family and their business.

882
00:53:39,640 --> 00:53:45,440
When we come back, we're going to talk about, well, that insurance in the process of new

883
00:53:45,440 --> 00:53:49,640
home ownership, what you need to know, what you need to protect and how you need to do

884
00:53:49,640 --> 00:53:51,760
it right here on around the house.

885
00:53:51,760 --> 00:54:00,720
News talk, 97 W okay.

886
00:54:00,720 --> 00:54:13,040
Good morning, good morning and welcome back to around the house.

887
00:54:13,040 --> 00:54:19,160
I'm Scott bro camp with his security technology and I have in studio this morning, Mr. Chris

888
00:54:19,160 --> 00:54:24,240
night from William night insurance agency, uh, William night was Chris's dad.

889
00:54:24,240 --> 00:54:29,200
So if you were listening in the first segment, uh, Chris shared with us a little bit about

890
00:54:29,200 --> 00:54:33,040
the story of his dad and, and the agency.

891
00:54:33,040 --> 00:54:37,680
If you need to get in touch with, well, in my opinion, one of the best insurance companies

892
00:54:37,680 --> 00:54:47,880
in town, you can go to wki.com wki.com or you can give them a call at eight, six, five,

893
00:54:47,880 --> 00:54:51,280
six, seven, zero, two, nine, nine, zero.

894
00:54:51,280 --> 00:54:58,320
Um, Chris, you know, we were talking in the first segment with our, our, uh, super sleuths

895
00:54:58,320 --> 00:54:59,960
from the title company.

896
00:54:59,960 --> 00:55:04,320
We were talking about backwards insurance and I thought it was a great term, especially

897
00:55:04,320 --> 00:55:06,000
right here in East Tennessee.

898
00:55:06,000 --> 00:55:11,480
Um, and so we're gonna, you're going to talk to us about, well, forward insurance.

899
00:55:11,480 --> 00:55:16,560
Uh, what is homeowners insurance and, and kind of what is it?

900
00:55:16,560 --> 00:55:18,060
What does it do?

901
00:55:18,060 --> 00:55:22,400
How does it work and why is it important in a real estate transaction?

902
00:55:22,400 --> 00:55:27,560
Well, you know, uh, well, I'll talk about the last first.

903
00:55:27,560 --> 00:55:34,280
It's important in that real estate transaction because the asset that the, the mortgage company

904
00:55:34,280 --> 00:55:38,560
is using to protect their loan is that home and that's the collateral.

905
00:55:38,560 --> 00:55:42,720
That's what, that's what allows them to loan you money and they want to make sure that's

906
00:55:42,720 --> 00:55:45,320
that collateral is safe.

907
00:55:45,320 --> 00:55:49,880
And that the way that's done is through, through homeowners insurance or, or if it was an automobile,

908
00:55:49,880 --> 00:55:54,160
it'd be a car insurance policy, but we're going to talk about homeowners insurance today.

909
00:55:54,160 --> 00:55:58,920
So the collateral for their loan is your home and they want that protected.

910
00:55:58,920 --> 00:56:04,720
So they are always going to require you to have homeowners insurance when you borrow

911
00:56:04,720 --> 00:56:10,480
money to purchase a home, but homeowners insurance is really simple and really complicated at

912
00:56:10,480 --> 00:56:11,640
the same time.

913
00:56:11,640 --> 00:56:15,960
I tell people, you know, insurance is nothing but risk transfer.

914
00:56:15,960 --> 00:56:16,960
There's an exposure.

915
00:56:16,960 --> 00:56:20,540
There's a risk out there and I can't afford to take that risk.

916
00:56:20,540 --> 00:56:25,280
So the way I, I deal with that is as I transfer that to someone else and that other person

917
00:56:25,280 --> 00:56:29,120
is the insurance company and they charge you some money to do that.

918
00:56:29,120 --> 00:56:30,200
And that's just the way it is.

919
00:56:30,200 --> 00:56:32,600
It's just simple risk transfer.

920
00:56:32,600 --> 00:56:39,080
So, so that's insurance in a nutshell, but homeowners insurance itself is, is got a lot

921
00:56:39,080 --> 00:56:42,920
of, a lot of bits and pieces and, and different things in it.

922
00:56:42,920 --> 00:56:45,960
And the first thing it is, is it's going to protect that home.

923
00:56:45,960 --> 00:56:52,200
It's going to protect it from certain losses, not all losses, but it's going to make it

924
00:56:52,200 --> 00:56:56,360
so that if you, if you lose that home or if there's damage to that home, it's going to

925
00:56:56,360 --> 00:56:59,120
help you get back to whole.

926
00:56:59,120 --> 00:57:02,120
You know, we say insurance is designed to make you whole.

927
00:57:02,120 --> 00:57:06,520
In other words, put you back to where you were before whatever happened happened.

928
00:57:06,520 --> 00:57:07,520
Yeah.

929
00:57:07,520 --> 00:57:13,240
And that's, you know, and again, I mean, you're, that's the asset, right?

930
00:57:13,240 --> 00:57:18,400
It's the, that's the piece of collateral and whoever that lender is, is, well, they're

931
00:57:18,400 --> 00:57:28,080
expecting it to stay in a position to be able to recapture their, their expense in, in the,

932
00:57:28,080 --> 00:57:30,360
in the case that something does happen.

933
00:57:30,360 --> 00:57:36,320
Um, so I mean, we can go nine million directions here.

934
00:57:36,320 --> 00:57:44,760
So I tell me what are some of the, the biggest pitfalls that you see when you deal with homeowners

935
00:57:44,760 --> 00:57:50,320
when, uh, with their homeowners insurance, some of the misconceptions about what it covers,

936
00:57:50,320 --> 00:57:51,320
what it doesn't cover.

937
00:57:51,320 --> 00:57:55,400
Obviously it's different depending on whatever state you may live in.

938
00:57:55,400 --> 00:58:03,920
Um, so the, the, uh, probably the first thing we always run into when we're, when someone's

939
00:58:03,920 --> 00:58:08,800
talking to us, we're talking to them about ensuring their home is, is how much to ensure

940
00:58:08,800 --> 00:58:09,800
that home for.

941
00:58:09,800 --> 00:58:15,720
Well, I'm only paying $375,000 for this house and that's all I want to ensure it for.

942
00:58:15,720 --> 00:58:21,640
But we always, always at every homeowner's policy we issue, we run a cost estimator

943
00:58:21,640 --> 00:58:27,160
and it's a complicated software program and every insurance company has their own and it

944
00:58:27,160 --> 00:58:29,640
determines what it's going to cost to replace your home.

945
00:58:29,640 --> 00:58:34,760
Now we've gone through times where people buy homes and, and we're, we're kind of in

946
00:58:34,760 --> 00:58:36,160
one of those right now.

947
00:58:36,160 --> 00:58:42,560
Um, you may buy a home for 400,000, but it may cost 450 to replace it.

948
00:58:42,560 --> 00:58:45,240
And they're going, why do I have to ensure my home for 450,000?

949
00:58:45,240 --> 00:58:47,640
Well, I only paid 400 for it.

950
00:58:47,640 --> 00:58:51,400
And it's because we're insuring for what it costs to replace your home, not what you

951
00:58:51,400 --> 00:58:52,960
paid for it.

952
00:58:52,960 --> 00:58:57,960
And, uh, that's one of the biggest things we always run into is insurer to value.

953
00:58:57,960 --> 00:59:01,840
And right now, one of the things that's going on in the industry is, is we're seeing, we've

954
00:59:01,840 --> 00:59:05,880
had massive home inflation over the last several years and all the insurance companies

955
00:59:05,880 --> 00:59:09,000
are catching up, trying to catch up, trying to get the coverage.

956
00:59:09,000 --> 00:59:10,480
A, we call that coverage.

957
00:59:10,480 --> 00:59:15,120
A, the amount that the home is insured for trying to get that back up to where it needs

958
00:59:15,120 --> 00:59:20,480
to be so that if there is a total loss, that house does burn to the ground, that the money

959
00:59:20,480 --> 00:59:22,440
is there to replace it.

960
00:59:22,440 --> 00:59:23,440
Right.

961
00:59:23,440 --> 00:59:24,440
Yeah.

962
00:59:24,440 --> 00:59:27,840
I mean, because, you know, obviously the payment you're making is based upon that value.

963
00:59:27,840 --> 00:59:35,040
And if, quite frankly, if you're underinsured, if something catastrophic happens, then, well,

964
00:59:35,040 --> 00:59:39,880
quite frankly, you're, you're going to be at a position that you're underinsured.

965
00:59:39,880 --> 00:59:45,360
So when it comes to rebuild or whatever you need to do, um, well, it's probably going

966
00:59:45,360 --> 00:59:51,560
to require significant out of, out of pocket expense because you were underinsured.

967
00:59:51,560 --> 00:59:59,320
So, so let's talk about in that, as we look at that total package, what about, what about

968
00:59:59,320 --> 01:00:01,440
my assets inside the home?

969
01:00:01,440 --> 01:00:04,680
Well, that's all part of your homeowner's insurance.

970
01:00:04,680 --> 01:00:06,080
You have these different coverages.

971
01:00:06,080 --> 01:00:10,000
Coverage A is your home, coverage B is other structures.

972
01:00:10,000 --> 01:00:16,080
So that's going to be a fence, could be an outbuilding, a shed, a detached garage.

973
01:00:16,080 --> 01:00:18,640
Coverage C is going to be your contents.

974
01:00:18,640 --> 01:00:29,040
Maybe all of those other coverages, B and C, are, are a percentage of A. So some, some

975
01:00:29,040 --> 01:00:31,760
carriers you can adjust that.

976
01:00:31,760 --> 01:00:33,840
And some carriers is just fixed.

977
01:00:33,840 --> 01:00:39,240
But you know, you'll see a lot of times where, if you have 400,000 coverage on your home,

978
01:00:39,240 --> 01:00:42,440
you may have 200,000 for contents.

979
01:00:42,440 --> 01:00:47,600
And that's how you protect your furniture, your clothing, your, your TVs, your stereos,

980
01:00:47,600 --> 01:00:48,880
et cetera, et cetera, et cetera.

981
01:00:48,880 --> 01:00:54,480
Now there are some, some limits within that policy on certain items.

982
01:00:54,480 --> 01:01:02,280
For instance, jewelry will have a specific limit, firearms, money, bullion.

983
01:01:02,280 --> 01:01:05,560
Those type of items will have inside limits, smaller limits.

984
01:01:05,560 --> 01:01:09,080
So like for instance, you may only have $2,000 with a jewelry coverage.

985
01:01:09,080 --> 01:01:15,280
It's not, it's not the amount, although it's not that 400, half of that 400,000, it may

986
01:01:15,280 --> 01:01:17,000
have only a $2,000 limit.

987
01:01:17,000 --> 01:01:22,080
So, so you may want to look at that situation that you're in, if you own, if you own jewelry,

988
01:01:22,080 --> 01:01:27,320
if you own watches, if you own a lot of firearms, you may want to look at a rider or an endorsement

989
01:01:27,320 --> 01:01:28,320
will come.

990
01:01:28,320 --> 01:01:32,840
We'll talk about that later, that, that can solve that, that problem and, and protect

991
01:01:32,840 --> 01:01:34,320
those assets also.

992
01:01:34,320 --> 01:01:35,320
Yeah.

993
01:01:35,320 --> 01:01:42,120
It's funny that most of those items you mentioned are the most popular that are stolen in burglaries.

994
01:01:42,120 --> 01:01:43,120
Yeah.

995
01:01:43,120 --> 01:01:47,080
I, I, I may know a little bit about that.

996
01:01:47,080 --> 01:01:55,160
So we hear this term all the time called mortgage protection insurance or MPI.

997
01:01:55,160 --> 01:01:57,720
What, what is that?

998
01:01:57,720 --> 01:02:01,280
And, and how does that work in correlation with you?

999
01:02:01,280 --> 01:02:02,280
What's the difference?

1000
01:02:02,280 --> 01:02:04,960
Well, mortgage protection, okay.

1001
01:02:04,960 --> 01:02:09,200
So your, your standard homeowner's insurance policy provides lots of coverages.

1002
01:02:09,200 --> 01:02:10,200
It covers your home.

1003
01:02:10,200 --> 01:02:12,080
It covers your personal liability.

1004
01:02:12,080 --> 01:02:17,080
It covers, you know, all those, those things that are in your home.

1005
01:02:17,080 --> 01:02:21,680
Mortgage protection insurance is specifically designed to protect you in the event that

1006
01:02:21,680 --> 01:02:25,040
something happens and you can't make your mortgage payment.

1007
01:02:25,040 --> 01:02:30,880
It's kind of like a life and disability policy, but it's, it's not, it, it doesn't have near

1008
01:02:30,880 --> 01:02:36,200
this, the underwriting on your, on your health and who you are when it comes to your life

1009
01:02:36,200 --> 01:02:37,200
insurance.

1010
01:02:37,200 --> 01:02:42,480
You know, you're not doing, having to do a medical exam and all that stuff to get it.

1011
01:02:42,480 --> 01:02:48,400
And what it's, what it does is, is it, it helps make your mortgage payment if you can't

1012
01:02:48,400 --> 01:02:51,040
work or something happens to you.

1013
01:02:51,040 --> 01:02:53,600
And that's, that's all it's designed to do.

1014
01:02:53,600 --> 01:02:57,680
It's not going to, to fix your home.

1015
01:02:57,680 --> 01:03:02,960
If, if, if a hellstorm ruins the roof on it, it's just going to help you make those mortgage

1016
01:03:02,960 --> 01:03:03,960
payments.

1017
01:03:03,960 --> 01:03:08,000
It's kind of like, you can buy that for automobile insurance too.

1018
01:03:08,000 --> 01:03:13,320
It's, you know, there's a product out there that a lot of auto dealerships will sell.

1019
01:03:13,320 --> 01:03:15,560
We don't sell mortgage protection insurance.

1020
01:03:15,560 --> 01:03:17,680
We sell homeowners insurance.

1021
01:03:17,680 --> 01:03:24,160
And I don't, I don't have a lot of knowledge about that product, just a little bit.

1022
01:03:24,160 --> 01:03:30,440
I would, I would steer, someone came to me and said, you know, I want to protect myself

1023
01:03:30,440 --> 01:03:32,760
in the event that I can't make my mortgage.

1024
01:03:32,760 --> 01:03:38,120
I would, I would talk to them about a disability product or a life insurance policy that would,

1025
01:03:38,120 --> 01:03:39,720
that would solve that problem.

1026
01:03:39,720 --> 01:03:40,720
Gotcha.

1027
01:03:40,720 --> 01:03:41,720
Yeah.

1028
01:03:41,720 --> 01:03:47,000
So forced, forced insurance.

1029
01:03:47,000 --> 01:03:52,600
So I know, like, if you're going to go buy a house and you're borrowing to get that house

1030
01:03:52,600 --> 01:04:01,640
and you have not got a policy to cover that house, that the mortgage company is going to

1031
01:04:01,640 --> 01:04:05,920
apply a forced insurance plan on that house.

1032
01:04:05,920 --> 01:04:07,440
What, what's that look like?

1033
01:04:07,440 --> 01:04:08,520
And what is that?

1034
01:04:08,520 --> 01:04:11,520
And how is that different than if I've got my own policy?

1035
01:04:11,520 --> 01:04:15,520
Well, you don't ever want to find yourself in a situation where you're having what we

1036
01:04:15,520 --> 01:04:17,520
call forced place coverage.

1037
01:04:17,520 --> 01:04:22,360
That's where the bank or the lender, if you do not keep your home insured, you're not

1038
01:04:22,360 --> 01:04:25,680
going to ever get to close that home without having insurance.

1039
01:04:25,680 --> 01:04:29,360
So, you know, and that's going to be a 12 month policy and you're going to have to pay

1040
01:04:29,360 --> 01:04:32,840
for that upfront and it's going to be in your closing cost.

1041
01:04:32,840 --> 01:04:37,080
But after that 12 month policy, after that first policy runs out, if you don't renew

1042
01:04:37,080 --> 01:04:45,800
your insurance policy for some reason, you fail to make your payment or you get canceled

1043
01:04:45,800 --> 01:04:52,880
for some reason and the bank finds out because you have to show them and your insurance company

1044
01:04:52,880 --> 01:04:57,800
and your insurance agent provide evidence that you have your home insured.

1045
01:04:57,800 --> 01:05:02,080
If they don't get that proof of coverage that your home is insured, they're going to insure

1046
01:05:02,080 --> 01:05:03,080
it for you.

1047
01:05:03,080 --> 01:05:05,600
And when they do that, it's very expensive.

1048
01:05:05,600 --> 01:05:09,240
They stick it on your house payment and all of a sudden you'll see your house payment

1049
01:05:09,240 --> 01:05:13,160
go through the roof and, and you'll go, what's gone wrong?

1050
01:05:13,160 --> 01:05:15,840
And it's because they put forced place coverage on it.

1051
01:05:15,840 --> 01:05:20,680
And the other thing about that forced place coverage is it's not a homeowner's policy.

1052
01:05:20,680 --> 01:05:23,800
It is only protecting the balance of that loan.

1053
01:05:23,800 --> 01:05:27,640
So, if something was to happen and you had forced place coverage and let's say you

1054
01:05:27,640 --> 01:05:33,800
had $100,000 of equity in your house and that house burned to the ground, you're not getting

1055
01:05:33,800 --> 01:05:35,040
any money out of that.

1056
01:05:35,040 --> 01:05:36,680
They're going to get their loan taken care of.

1057
01:05:36,680 --> 01:05:40,440
They're going to get the balance of your mortgage paid off and you're going to be left with

1058
01:05:40,440 --> 01:05:41,440
nothing.

1059
01:05:41,440 --> 01:05:46,920
And it's, it's very expensive and it's, it's not a good situation to be in.

1060
01:05:46,920 --> 01:05:47,920
Yeah.

1061
01:05:47,920 --> 01:05:54,880
I, I actually, I had that happen to me once and it was clearly just a mix up in paperwork.

1062
01:05:54,880 --> 01:06:02,440
The mortgage company did, they misplaced my renewal that was paid for out of the escrow

1063
01:06:02,440 --> 01:06:03,840
that they were holding.

1064
01:06:03,840 --> 01:06:04,840
So they knew they paid it.

1065
01:06:04,840 --> 01:06:10,240
I mean, they, and it was crazy, but yeah, I got a bill and it was like my mortgage payment

1066
01:06:10,240 --> 01:06:14,000
was up like, I mean, it was ridiculous amount of money.

1067
01:06:14,000 --> 01:06:18,120
I mean, I think it was almost 300, something dollars or three to $400.

1068
01:06:18,120 --> 01:06:19,920
And I'm like, what is this?

1069
01:06:19,920 --> 01:06:26,640
And sure enough, that's what happened and they had applied a forced policy onto our,

1070
01:06:26,640 --> 01:06:29,680
our loan due to the mix up.

1071
01:06:29,680 --> 01:06:32,600
And so luckily I was able to get it straightened out.

1072
01:06:32,600 --> 01:06:38,120
We very quickly, we see that, you know, mortgages are bought and sold every day.

1073
01:06:38,120 --> 01:06:44,000
So you may start out with, with a local lender and then they may sell that mortgage to someone

1074
01:06:44,000 --> 01:06:48,080
else and the address changes or where you send evidence of insurance.

1075
01:06:48,080 --> 01:06:50,120
And sometimes we're not told.

1076
01:06:50,120 --> 01:06:54,480
And so then we get the, you know, we get the, we get the phone call.

1077
01:06:54,480 --> 01:06:58,920
My bank does not know that I haven't, they don't think I have insurance on my home.

1078
01:06:58,920 --> 01:07:00,200
And I know I do.

1079
01:07:00,200 --> 01:07:02,080
And I go, well, yes, surely you do.

1080
01:07:02,080 --> 01:07:03,080
We know that you do.

1081
01:07:03,080 --> 01:07:07,360
And we find out that the evidence, the proof went to a different location.

1082
01:07:07,360 --> 01:07:12,160
So we're always not always, but every now and then we have to fix that problem.

1083
01:07:12,160 --> 01:07:13,160
Yeah.

1084
01:07:13,160 --> 01:07:15,440
Well, you know, it happens, right?

1085
01:07:15,440 --> 01:07:19,880
And that's why having an awesome local agent is so important because you can always get

1086
01:07:19,880 --> 01:07:23,240
a hold of, I can always get a hold of my folks over at William Night Insurance.

1087
01:07:23,240 --> 01:07:25,440
I'm sure all your clients can as well.

1088
01:07:25,440 --> 01:07:34,640
H 656702990 or wki.com is the easiest way to get a hold of Chris and his team.

1089
01:07:34,640 --> 01:07:39,240
We are going to be talking about what affects the price of that homeowner's insurance policy

1090
01:07:39,240 --> 01:07:41,720
when we come back right here on around the house.

1091
01:07:41,720 --> 01:07:48,720
We're just talking 97 W okay.

1092
01:07:48,720 --> 01:07:59,480
I

1093
01:07:59,480 --> 01:08:03,280
welcome back to around the house.

1094
01:08:03,280 --> 01:08:05,520
Hope you're enjoying this beautiful morning.

1095
01:08:05,520 --> 01:08:13,760
I hope you've been enjoying learning about, well, title insurance.

1096
01:08:13,760 --> 01:08:19,920
Now homeowners insurance, we are making sure that your process of buying and closing on

1097
01:08:19,920 --> 01:08:26,720
that home in the future of living in that home is going to be sound and secure with

1098
01:08:26,720 --> 01:08:31,200
me this morning is Chris Knight from William Night Insurance Agency.

1099
01:08:31,200 --> 01:08:37,120
And as we alluded to before the break in the event that well, something happens, I can

1100
01:08:37,120 --> 01:08:43,080
just tell you, I certainly love the fact that I can call my local agent right here.

1101
01:08:43,080 --> 01:08:45,720
And well, they're always happy to help.

1102
01:08:45,720 --> 01:08:49,480
I'm just going to tell you, they're always happy to help.

1103
01:08:49,480 --> 01:08:55,560
Chris, let's let's talk about what are the things that affect the price of that policy?

1104
01:08:55,560 --> 01:09:00,080
I mean, obviously the value of whatever we're ensuring is a part of it.

1105
01:09:00,080 --> 01:09:06,320
So what else goes into the pricing structure of our homeowners insurance policy?

1106
01:09:06,320 --> 01:09:07,320
Yeah.

1107
01:09:07,320 --> 01:09:08,840
And it varies a lot.

1108
01:09:08,840 --> 01:09:13,800
And I'll tell a story about a home I had insured down in West Knoxville.

1109
01:09:13,800 --> 01:09:18,880
And it was a street and all the houses were basically the same.

1110
01:09:18,880 --> 01:09:24,280
And it was about a six or $700,000 house and a guy buys the house next door.

1111
01:09:24,280 --> 01:09:27,200
And he says, man, you need to call my agent.

1112
01:09:27,200 --> 01:09:28,200
He's great.

1113
01:09:28,200 --> 01:09:29,720
He does a great job for me.

1114
01:09:29,720 --> 01:09:35,800
And so he has this new neighbor call me who's buying this home and I gave him a price and

1115
01:09:35,800 --> 01:09:39,600
it was almost double his neighbors.

1116
01:09:39,600 --> 01:09:44,440
And then we're talking about the same home, the same amount of coverage on the same street

1117
01:09:44,440 --> 01:09:45,840
in the same city.

1118
01:09:45,840 --> 01:09:46,840
Wow.

1119
01:09:46,840 --> 01:09:49,480
You know, and it was almost double.

1120
01:09:49,480 --> 01:09:51,720
And couldn't understand that.

1121
01:09:51,720 --> 01:09:54,600
He says, well, why is my neighbor so cheap?

1122
01:09:54,600 --> 01:09:58,920
And it's a tough discussion and I really didn't want to have it with him.

1123
01:09:58,920 --> 01:10:04,280
One of the biggest things that affects your insurance is your credit.

1124
01:10:04,280 --> 01:10:08,200
And it's amazing how much that we don't like to call it credit.

1125
01:10:08,200 --> 01:10:11,880
The industry got us away from calling it credit, but it is credit.

1126
01:10:11,880 --> 01:10:13,640
They call it insurance score.

1127
01:10:13,640 --> 01:10:16,440
So his insurance score wasn't as good.

1128
01:10:16,440 --> 01:10:19,400
So the big question is what affects your insurance score?

1129
01:10:19,400 --> 01:10:24,040
You know, we all know that, that, of course, if your home is a more expensive home, it's

1130
01:10:24,040 --> 01:10:26,160
going to cost more to ensure it.

1131
01:10:26,160 --> 01:10:30,880
This location can impact that if you're on the coast, if you're in a wildfire area, if

1132
01:10:30,880 --> 01:10:33,600
you're in tornado alley, if we'll call it that way.

1133
01:10:33,600 --> 01:10:38,720
And we're kind of becoming tornado alley now here in Tennessee, but your insurance score

1134
01:10:38,720 --> 01:10:40,680
has a lot to do with that.

1135
01:10:40,680 --> 01:10:44,400
Things you can do to protect your insurance score is have good credit.

1136
01:10:44,400 --> 01:10:47,400
And the other thing is, is not have claims.

1137
01:10:47,400 --> 01:10:51,960
You know, a lot of people want to use their homeowner's insurance as a maintenance for

1138
01:10:51,960 --> 01:10:52,960
their home.

1139
01:10:52,960 --> 01:10:56,880
They don't want to replace their roof, even though it's 25 or 30 years old, it needs to

1140
01:10:56,880 --> 01:10:57,880
be replaced.

1141
01:10:57,880 --> 01:11:00,160
They're just holding on for that hail storm.

1142
01:11:00,160 --> 01:11:06,520
And I know a roof is an expensive, expensive piece of the house, but small claims really

1143
01:11:06,520 --> 01:11:09,920
can work you over when it comes to your insurance.

1144
01:11:09,920 --> 01:11:15,960
A couple small claims is, is a lot worse than having one large claim when it comes to insurance.

1145
01:11:15,960 --> 01:11:22,640
Well, you know, we all hear stories that, you know, my insurance company canceled me

1146
01:11:22,640 --> 01:11:28,680
because I had too many claims or I had two claims in less than a year or whatever it

1147
01:11:28,680 --> 01:11:29,680
is.

1148
01:11:29,680 --> 01:11:35,320
And, you know, I mean, and I know you have to deal with those questions and I know a

1149
01:11:35,320 --> 01:11:42,880
lot of them, you know, you're underwriting for the best solution for your clients, but

1150
01:11:42,880 --> 01:11:50,120
I'm just going to tell you that that can be disheartening knowing that it's like, okay,

1151
01:11:50,120 --> 01:11:56,240
I'm paying for this service or this, this is the reason I have it in the, in the event

1152
01:11:56,240 --> 01:11:58,560
something happens.

1153
01:11:58,560 --> 01:11:59,680
But you're right.

1154
01:11:59,680 --> 01:12:04,600
It needs to be something kind of catastrophic, something major, you know, a tree falls on

1155
01:12:04,600 --> 01:12:09,600
the house or something major and not a maintenance tool.

1156
01:12:09,600 --> 01:12:14,680
Weather claims don't affect you nearly as bad as a maintenance claim.

1157
01:12:14,680 --> 01:12:21,000
maintenance claims or something like half your house got flooded because you had a 15

1158
01:12:21,000 --> 01:12:24,480
year old water hose go into your, your, your washing machine.

1159
01:12:24,480 --> 01:12:32,200
That's a maintenance top claim and, you know, or an older outdated electrical system that

1160
01:12:32,200 --> 01:12:37,000
needed some upgrades, you know, those things should be taken care of in your home.

1161
01:12:37,000 --> 01:12:40,200
You should do everything possible to keep your home is as good a kitchen condition as

1162
01:12:40,200 --> 01:12:41,600
possible.

1163
01:12:41,600 --> 01:12:48,360
We see probably more claims come from ice makers and, and water claims are the worst

1164
01:12:48,360 --> 01:12:53,880
claims and they come from ice makers and they, they come from that, that, that, that hose

1165
01:12:53,880 --> 01:12:55,960
going to your washing machine.

1166
01:12:55,960 --> 01:12:59,480
And I tell people replace that thing.

1167
01:12:59,480 --> 01:13:05,080
It's, it's $30 go to go to Home Depot, go to Lowe's, go to your local plumber and, and

1168
01:13:05,080 --> 01:13:08,440
have the, and get a new hose and replace that thing because we see a lot of claims come

1169
01:13:08,440 --> 01:13:10,440
from that.

1170
01:13:10,440 --> 01:13:15,000
You know, as time has gone on, we see that we see less, less claims coming from the ice

1171
01:13:15,000 --> 01:13:16,000
makers.

1172
01:13:16,000 --> 01:13:19,280
They used to have a little plastic tube that went to them and now they've, they've, they've

1173
01:13:19,280 --> 01:13:22,280
kind of upgraded that system and we're not seeing as much as that.

1174
01:13:22,280 --> 01:13:25,760
But water claims are really bad.

1175
01:13:25,760 --> 01:13:31,360
Carriers don't like water claims and they, you know, they cause a problem.

1176
01:13:31,360 --> 01:13:38,680
We had a big water claim this spring where, where somebody had left the garden hose on

1177
01:13:38,680 --> 01:13:46,000
the winter and that, and it caused that pipe to freeze inside the wall and he, he got the

1178
01:13:46,000 --> 01:13:48,160
hose out, he was doing something with it.

1179
01:13:48,160 --> 01:13:51,920
And while the, while he was running water through his garden hose, it was all pouring

1180
01:13:51,920 --> 01:13:53,440
out inside that wall.

1181
01:13:53,440 --> 01:14:00,080
So be sure to always disconnect your garden hoses in the, in the fall when you're, when

1182
01:14:00,080 --> 01:14:05,200
you're not using them because that pipe will freeze inside the wall if you keep a hose hooked

1183
01:14:05,200 --> 01:14:06,200
up.

1184
01:14:06,200 --> 01:14:11,480
And the pipe of claims are bad, but you know, other things that affect your insurance premium

1185
01:14:11,480 --> 01:14:14,080
a lot is the location.

1186
01:14:14,080 --> 01:14:15,640
That's a, that's a big thing.

1187
01:14:15,640 --> 01:14:21,160
And the age of your home, older homes are just more expensive to ensure they have, they

1188
01:14:21,160 --> 01:14:23,560
have more claims and, and, uh,

1189
01:14:23,560 --> 01:14:27,560
Well, more to go, more to, you know, more to happen.

1190
01:14:27,560 --> 01:14:28,560
Yeah.

1191
01:14:28,560 --> 01:14:29,560
Really?

1192
01:14:29,560 --> 01:14:30,560
Yeah.

1193
01:14:30,560 --> 01:14:41,880
And, you know, when you think about an older home in particular, you know, I mean, there

1194
01:14:41,880 --> 01:14:49,440
is just going to be more involved when something happens just because of the age of the home.

1195
01:14:49,440 --> 01:14:50,440
That's correct.

1196
01:14:50,440 --> 01:14:56,160
They're not only is the, the, the systems that have over time that they're used to construct

1197
01:14:56,160 --> 01:14:58,160
homes have changed tremendously.

1198
01:14:58,160 --> 01:15:00,560
You know, you know, I'm involved with the homeowner association.

1199
01:15:00,560 --> 01:15:05,280
So I, I stay in it up to speed on, on all that stuff and what's going on in new home

1200
01:15:05,280 --> 01:15:08,640
construction and of course Scott, you're involved in it and you're in new homes every day.

1201
01:15:08,640 --> 01:15:13,480
Uh, and you just see how things change over time and the floorings and the subfloors and

1202
01:15:13,480 --> 01:15:18,240
the plumbing and the, you know, we went from galvanized pipe to copper pipe and now everything

1203
01:15:18,240 --> 01:15:24,000
is, is pecs and you know, it looks like pecs is going to be a pretty good product.

1204
01:15:24,000 --> 01:15:28,840
I kind of, all these new products come out and I just cringe because, you know, I've,

1205
01:15:28,840 --> 01:15:32,560
I've been around long enough and of course my agency's been around long enough that we

1206
01:15:32,560 --> 01:15:36,720
see these products come along that look like they're going to solve every building problem

1207
01:15:36,720 --> 01:15:37,720
there is.

1208
01:15:37,720 --> 01:15:42,280
And, and it's not until 10 or 15 years later that we realize that that was a bad product.

1209
01:15:42,280 --> 01:15:45,680
You know, you, you mentioned that I'm going to ask, right?

1210
01:15:45,680 --> 01:15:50,720
So we had the, um, I forget what the product was even called, but the, the fiber board

1211
01:15:50,720 --> 01:15:56,560
siding that we had, there was just the whole huge lawsuits and everything like that.

1212
01:15:56,560 --> 01:16:03,080
So in the event that my home builder uses a, the new state of the art product and 10

1213
01:16:03,080 --> 01:16:07,880
years later we find out it's not what it was cracked up to be.

1214
01:16:07,880 --> 01:16:12,640
How does, how does that work with my homeowner's insurance company or does it?

1215
01:16:12,640 --> 01:16:13,640
It does work.

1216
01:16:13,640 --> 01:16:16,240
Uh, excuse me.

1217
01:16:16,240 --> 01:16:20,440
Uh, you know, uh, you know, when that was synthetic stucco, we called it synthetic

1218
01:16:20,440 --> 01:16:26,320
stucco and it was or EFAS and that was, that was an acronym for exterior insulation finishing

1219
01:16:26,320 --> 01:16:27,840
a system.

1220
01:16:27,840 --> 01:16:31,000
And it's where they actually stuck styrofoam on the outside of your house and then put

1221
01:16:31,000 --> 01:16:32,920
a coating over it.

1222
01:16:32,920 --> 01:16:37,920
And the only problem was, was, was, and that was long before we had house wrap and Tyvek

1223
01:16:37,920 --> 01:16:42,000
and all that stuff or, or all this new green board that they're building houses out of

1224
01:16:42,000 --> 01:16:47,080
now and they just had OSB with styrofoam glued to it and it'd get a little crack in it and

1225
01:16:47,080 --> 01:16:51,280
that water'd get in that styrofoam and if everybody's, anybody's ever been around styrofoam

1226
01:16:51,280 --> 01:16:55,440
after a while it absorbs water and then the house has just started rotten from the inside

1227
01:16:55,440 --> 01:16:59,720
out, but the insurance company's paid those claims.

1228
01:16:59,720 --> 01:17:03,840
So you know, if something comes along down the road and, and you know, 10 years later

1229
01:17:03,840 --> 01:17:09,800
it becomes a problem, you know, your insurance carriers are going to, going to cover that.

1230
01:17:09,800 --> 01:17:14,560
Depending on, on what it is now over time, these insurance companies come up with exclusions

1231
01:17:14,560 --> 01:17:21,480
and, and, and now there's, there's not necessarily an exclusion for synthetic stucco, but a lot

1232
01:17:21,480 --> 01:17:24,480
of carriers will not write homes that use synthetic stucco.

1233
01:17:24,480 --> 01:17:26,880
So that's where you run into a problem.

1234
01:17:26,880 --> 01:17:31,640
They'll cover that claim usually unless there's an, unless there's an exclusion out there

1235
01:17:31,640 --> 01:17:36,880
for that loss, but they may get to a point where they don't want to ensure that type

1236
01:17:36,880 --> 01:17:37,880
home.

1237
01:17:37,880 --> 01:17:41,760
So synthetic stucco homes are a little harder to ensure, you know, than, than just a regular

1238
01:17:41,760 --> 01:17:47,720
home with a brick or, or vinyl or, or wood or fiber cement siding.

1239
01:17:47,720 --> 01:17:48,720
Right.

1240
01:17:48,720 --> 01:17:52,080
Well, and you know, you mentioned that your involvement with the home builder association

1241
01:17:52,080 --> 01:17:57,560
and to say that you, you're, uh, involved is kind of an understatement.

1242
01:17:57,560 --> 01:18:05,360
You are, you are very much, uh, heavily involved and, and I know that you stay up to date with

1243
01:18:05,360 --> 01:18:06,760
a lot of the regulation.

1244
01:18:06,760 --> 01:18:11,160
Um, and I believe you, are you still on our governmental affairs team?

1245
01:18:11,160 --> 01:18:12,160
I do.

1246
01:18:12,160 --> 01:18:14,560
I sit on the membership committee and the governmental affairs committee.

1247
01:18:14,560 --> 01:18:16,160
And I really liked that governmental affairs.

1248
01:18:16,160 --> 01:18:21,800
It just, it just keeps me up to speed on how much is going on out there legislatively to

1249
01:18:21,800 --> 01:18:29,800
make our homes more expensive through taxation and through, through codes, uh, you know,

1250
01:18:29,800 --> 01:18:37,560
whether it be requiring sprinkler systems in homes or, uh, adequate facilities, taxes.

1251
01:18:37,560 --> 01:18:44,600
And, uh, there's a lot of, a lot of government that needs money and, and, uh, that's one

1252
01:18:44,600 --> 01:18:46,240
of the ways I get it.

1253
01:18:46,240 --> 01:18:50,120
Well, you know, I mean, that's, I guess that's another topic.

1254
01:18:50,120 --> 01:18:51,640
Two taxes are four, right?

1255
01:18:51,640 --> 01:18:52,640
All right.

1256
01:18:52,640 --> 01:18:55,440
Well, I think that's a great time to take a break.

1257
01:18:55,440 --> 01:18:59,720
Uh, well, when we come back, we are going to talk, uh, more about your homeowner insurance

1258
01:18:59,720 --> 01:19:03,480
policy and why does it seem like the price goes up every year?

1259
01:19:03,480 --> 01:19:06,200
There's, I'm sure a very good reason for that.

1260
01:19:06,200 --> 01:19:09,680
And we're going to learn about that when we come back right here on around the house

1261
01:19:09,680 --> 01:19:26,400
on news talk, WOKI.

1262
01:19:26,400 --> 01:19:28,960
Welcome back to around the house.

1263
01:19:28,960 --> 01:19:34,920
I'm Scott Brokamp, your host of around the house owner and founder of his security and

1264
01:19:34,920 --> 01:19:40,400
technology and my business partner, Mr. Doug Fraker, who is well officially on vacation

1265
01:19:40,400 --> 01:19:41,400
this week.

1266
01:19:41,400 --> 01:19:46,040
And, uh, Doug, if you're listening, enjoy some time away, buddy.

1267
01:19:46,040 --> 01:19:47,040
You deserve it.

1268
01:19:47,040 --> 01:19:50,040
Um, enjoy, enjoy the family time.

1269
01:19:50,040 --> 01:19:54,080
So, uh, one of the things that's not going to go up and that is your cost of listening

1270
01:19:54,080 --> 01:20:03,280
to this show, but what may go up most likely every year is your insurance policy.

1271
01:20:03,280 --> 01:20:07,360
Mr. Chris Knight from William Knight insurance is in the house and he's going to tell us

1272
01:20:07,360 --> 01:20:08,840
why that is.

1273
01:20:08,840 --> 01:20:13,560
Well, it almost always goes up and people don't understand that.

1274
01:20:13,560 --> 01:20:17,800
Uh, we may be able to move you to a different carrier because we're an independent agency.

1275
01:20:17,800 --> 01:20:22,640
So we have about 35 insurance companies we represent that we can write homeowners with.

1276
01:20:22,640 --> 01:20:25,960
And we might move you from one carrier to another and save you some money.

1277
01:20:25,960 --> 01:20:29,800
But at the end of the day, everybody's going up and they're always going up.

1278
01:20:29,800 --> 01:20:30,920
And it's really simple.

1279
01:20:30,920 --> 01:20:33,120
It's just one big reason why.

1280
01:20:33,120 --> 01:20:35,000
And that's inflation.

1281
01:20:35,000 --> 01:20:38,000
Everything costs more today than it did yesterday.

1282
01:20:38,000 --> 01:20:39,840
Everything costs more this year than it did last.

1283
01:20:39,840 --> 01:20:46,600
We look at it, you know, as we've gone through this cycle of huge, huge increases in the

1284
01:20:46,600 --> 01:20:52,840
values of your homes and we're tasked with making sure that we have your home insured

1285
01:20:52,840 --> 01:20:53,840
properly.

1286
01:20:53,840 --> 01:20:55,640
That keeps us out of court.

1287
01:20:55,640 --> 01:20:56,640
Yeah.

1288
01:20:56,640 --> 01:20:57,640
To be honest.

1289
01:20:57,640 --> 01:21:01,760
And, uh, but it, but it protects you and that's what we're here to do.

1290
01:21:01,760 --> 01:21:08,720
So as your home goes up in value, as it costs more to replace your home as lumber cycles

1291
01:21:08,720 --> 01:21:17,840
up and down, as new systems come into play, uh, you know, uh, we have to adjust our coverages

1292
01:21:17,840 --> 01:21:20,160
to, to take care of those things.

1293
01:21:20,160 --> 01:21:24,920
So not only is it going up on the home side, but it's going up on the cost side to run

1294
01:21:24,920 --> 01:21:29,040
businesses, you know, insurance companies, we hate to say it, but they're out there to

1295
01:21:29,040 --> 01:21:30,680
make money.

1296
01:21:30,680 --> 01:21:35,640
And you know, their, their inflation goes up to the cost of employees go up.

1297
01:21:35,640 --> 01:21:37,240
Everything is always going up.

1298
01:21:37,240 --> 01:21:39,080
That's just, that's just the way it is.

1299
01:21:39,080 --> 01:21:41,800
And I would rather have things going up than going down.

1300
01:21:41,800 --> 01:21:42,800
Let me tell you.

1301
01:21:42,800 --> 01:21:44,200
Well, I'll agree with that.

1302
01:21:44,200 --> 01:21:48,400
You know, it's, you know, I like inflation to be a little lower than it's being, but,

1303
01:21:48,400 --> 01:21:53,120
uh, as we see higher times of inflation, like we're, we're going through right now, we're

1304
01:21:53,120 --> 01:21:56,160
seeing homeowners renewals coming in a lot higher.

1305
01:21:56,160 --> 01:22:01,040
Uh, I had a carrier in my office yesterday that shared some news about about 15 insurance

1306
01:22:01,040 --> 01:22:04,920
companies that are the big ones around town.

1307
01:22:04,920 --> 01:22:09,800
And we saw rate increases or the, you know, all insurance rates are filed with the state

1308
01:22:09,800 --> 01:22:10,800
of Tennessee.

1309
01:22:10,800 --> 01:22:11,800
So that's public knowledge.

1310
01:22:11,800 --> 01:22:18,400
If you know how to get to it and, uh, those rates and we're seeing rates in increases anywhere

1311
01:22:18,400 --> 01:22:23,080
from 15 to 40% with an average in the twenties right now.

1312
01:22:23,080 --> 01:22:29,080
And so, and that's been going on all year and it will probably continue.

1313
01:22:29,080 --> 01:22:33,440
We're starting to see things get, get a little bit better, uh, inflation slowing down and

1314
01:22:33,440 --> 01:22:37,760
the insurance carriers, part of what they were doing was just catching up in, in the

1315
01:22:37,760 --> 01:22:38,760
value of your home.

1316
01:22:38,760 --> 01:22:40,800
You know, they have to increase your home.

1317
01:22:40,800 --> 01:22:45,520
10% you can expect your insurance premium to go up, uh, to affect that, to affect the

1318
01:22:45,520 --> 01:22:46,760
premium on your insurance.

1319
01:22:46,760 --> 01:22:51,080
When your coverage goes up, you're buying, you're buying more insurance and that, that's

1320
01:22:51,080 --> 01:22:53,060
going to go up.

1321
01:22:53,060 --> 01:22:58,960
But it's really, I'm on, I'm in an agency peer group and we're agents all over the country.

1322
01:22:58,960 --> 01:23:05,920
And my good friends in Florida have seen a hundred and 200% increases in their premiums

1323
01:23:05,920 --> 01:23:07,600
for the last several years.

1324
01:23:07,600 --> 01:23:14,240
You know, and, and, and I feel so, so bad for, for my agent friend down there that says she

1325
01:23:14,240 --> 01:23:18,880
has to pick up the phone and deliver the bad news that their homeowner's premium doubled.

1326
01:23:18,880 --> 01:23:22,400
And I just cannot imagine having to do that on a day in, day out basis.

1327
01:23:22,400 --> 01:23:28,160
And it's really tough on your staff, but inflation is a big thing and, and claims, claims will

1328
01:23:28,160 --> 01:23:30,640
make your insurance premium go up.

1329
01:23:30,640 --> 01:23:32,720
Don't, and that's just the way it is.

1330
01:23:32,720 --> 01:23:38,880
And, uh, so, you know, I'll have customers call me and they'll, they'll say, well, this

1331
01:23:38,880 --> 01:23:39,880
has happened.

1332
01:23:39,880 --> 01:23:40,880
What should I do?

1333
01:23:40,880 --> 01:23:41,880
Right.

1334
01:23:41,880 --> 01:23:47,600
And I say, well, you know, and it's, you know, I, I try to, try to coach them and I try to

1335
01:23:47,600 --> 01:23:50,120
advise them, but you know, at the end of the day, it's their decision.

1336
01:23:50,120 --> 01:23:55,160
You know, when you have a thousand dollar deductible and you turn in a $1,500 claim and you're

1337
01:23:55,160 --> 01:23:56,960
only going to get $500 out of it.

1338
01:23:56,960 --> 01:23:57,960
Right.

1339
01:23:57,960 --> 01:24:00,920
It's, that's not, that's not good, a good wise decision to make.

1340
01:24:00,920 --> 01:24:06,600
I know you bought insurance and I know it makes you mad when you, when you use it, uh,

1341
01:24:06,600 --> 01:24:09,720
and then that you get penalized for using it because, you know, I paid all these premium

1342
01:24:09,720 --> 01:24:10,720
for all these years.

1343
01:24:10,720 --> 01:24:14,040
I've heard those conversations and, and now I've had a claim and you're going to raise

1344
01:24:14,040 --> 01:24:15,040
my rates.

1345
01:24:15,040 --> 01:24:17,240
Well, I'm not raising your rates.

1346
01:24:17,240 --> 01:24:18,640
The insurance companies are.

1347
01:24:18,640 --> 01:24:19,640
Right.

1348
01:24:19,640 --> 01:24:23,840
Uh, we just sometimes have to be the messenger there that, that shares the bad, bad news,

1349
01:24:23,840 --> 01:24:28,520
but, but, uh, claims and inflation are the biggest driving factors.

1350
01:24:28,520 --> 01:24:29,520
Yeah.

1351
01:24:29,520 --> 01:24:34,240
And, uh, your carriers have a lot of discounts to help, help solve those problems.

1352
01:24:34,240 --> 01:24:35,600
Full pay discounts are great.

1353
01:24:35,600 --> 01:24:37,560
Uh, paying your premium on time.

1354
01:24:37,560 --> 01:24:43,560
If you're notoriously late, it will, will affect your insurance premium down the road.

1355
01:24:43,560 --> 01:24:50,280
So what other, what are options are available as far as helping to, um, get some discounts

1356
01:24:50,280 --> 01:24:51,560
on that policy?

1357
01:24:51,560 --> 01:24:56,040
Well, the biggest thing right now, and you hear it all the time when you're, when you

1358
01:24:56,040 --> 01:24:58,360
see commercials is bundling.

1359
01:24:58,360 --> 01:25:04,480
It is best if you can to bundle your home and your auto and your, if you have an umbrella

1360
01:25:04,480 --> 01:25:08,920
policy, which I advise most people to have an umbrella policy, which basically just gives

1361
01:25:08,920 --> 01:25:15,280
you more liability coverage than your homeowner's policy did, uh, bundling that insurance is

1362
01:25:15,280 --> 01:25:21,560
a big thing, uh, to, to reduce your cost.

1363
01:25:21,560 --> 01:25:26,680
Full pay discounts, uh, if you can afford to do that or, or, or good options.

1364
01:25:26,680 --> 01:25:32,440
Um, but, but the biggest factor is, uh, is bundling.

1365
01:25:32,440 --> 01:25:36,120
There are other things like if you have an alarm system that can save you some money.

1366
01:25:36,120 --> 01:25:37,120
Right.

1367
01:25:37,120 --> 01:25:38,120
Yeah.

1368
01:25:38,120 --> 01:25:40,340
So you can put them in that alarm system monitored.

1369
01:25:40,340 --> 01:25:44,920
And, uh, uh, if you have a home sprinkler system, it can, it can save you some, there's

1370
01:25:44,920 --> 01:25:46,280
some discounts for that.

1371
01:25:46,280 --> 01:25:49,920
Uh, different, there's different products, different things out there that can, can

1372
01:25:49,920 --> 01:25:54,160
discount, an automatic generator, uh, generator that automatically kicks on.

1373
01:25:54,160 --> 01:25:58,360
I was talking to one of the agents in my office today and she said, one of our carriers has

1374
01:25:58,360 --> 01:26:02,240
a new, came out with a new discount for automatic generators.

1375
01:26:02,240 --> 01:26:06,280
So those are, those are some of the things that can help discount, uh, your home premium.

1376
01:26:06,280 --> 01:26:10,600
And that changes, you know, I mean all the time, right?

1377
01:26:10,600 --> 01:26:15,600
As I know when we went to all these tankless water heaters

1378
01:26:16,320 --> 01:26:20,040
that, you know, being water claims are the biggest

1379
01:26:20,040 --> 01:26:24,180
and most expensive claims that a lot of these companies

1380
01:26:24,180 --> 01:26:26,720
were giving additional discounts.

1381
01:26:26,720 --> 01:26:30,220
If you had water monitoring and automatic water shutoffs,

1382
01:26:30,220 --> 01:26:34,040
tons of different things that are available.

1383
01:26:34,040 --> 01:26:37,720
And well, quite frankly, what I love about my insurance

1384
01:26:37,720 --> 01:26:41,320
company, William Knight Insurance, is that I can go walk

1385
01:26:41,320 --> 01:26:44,120
in the front door, sit down, have a meeting, go to lunch,

1386
01:26:44,120 --> 01:26:46,840
whatever it is, I can sit down face to face

1387
01:26:46,840 --> 01:26:49,920
and have that conversation because man, I just don't want

1388
01:26:49,920 --> 01:26:53,200
to have a 1-800 phone call to have that conversation.

1389
01:26:53,200 --> 01:26:54,880
That is not how I want to do that.

1390
01:26:54,880 --> 01:26:59,000
So if you need an awesome local insurance company,

1391
01:26:59,000 --> 01:27:04,000
William Knight Insurance, wkia.com is the easiest way

1392
01:27:04,880 --> 01:27:06,400
to reach them from their website

1393
01:27:06,400 --> 01:27:11,400
or give them a call at 865-670-2990.

1394
01:27:12,360 --> 01:27:14,840
If you missed part of today's show and want to listen again,

1395
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there's a link to the replays on my website.

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Just go to hissecurity.com and click on the A-T-H radio tab

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to find the recordings of all shows.

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Or you can go to where you find your favorite podcast

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and just search around the house with Scott Brokamp.

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I want to thank my guests for being on the program today.

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Jeannie Davis and Joni Wilson.

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Jeannie is with Independence Title,

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Joni is with Conveyance Title,

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and then Chris Knight from William Knight Insurance Agency.

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Have a top of your guests you'd love to hear on the show?

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Send email with your suggestions and comments

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to thehouse at hissecurity.com.

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Around the house is produced by News Talk 98.7

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with guest coordination services from Be Media Savvy.

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We'll be back next week to wrap up our month-long look

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at the home buying process.

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We'll be talking about moving in

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and personalizing your new home.

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Until then, I hope you have some quality time

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around the house today,

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and remember, celebrate your father on Father's Day tomorrow.