Tag Archives: ALTA policy

Two Sure Times To Round-Up

Enjoy Peace of Mind

Enjoy Peace of Mind

There are two sure times to round-up. When calculating takeoff and landing distances and when deciding on insurance coverage.

Things are happening quickly. It’s nearly midnight. A medical team is climbing onboard and we need to get them 300 miles away-fast. Someone’s life depends on it. The fuel truck pulls away from the Citation 560 and the ground crew pulls the chocks. The cabin door is closed and a little light automatically goes off in the cockpit indicating the door is properly sealed. I’m working up the take-off numbers, setting radio frequencies on the six different radios, setting the altitude alerter, programming our route in the FMS (Flight Management System) and bugging our airspeed indicators.

Our takeoff distance, the amount of runway we’ll need to get in the air and clear all obstacles on the ground, is determined by a number of variables. Primarily by the weight of the airplane, a given power setting, and outside air temperature. Airplanes perform better in colder air. As pilots we use charts to help us calculate the proper engine power setting for our weight and outside air temperature. Of course the exact weight and temperature never seem to match what the chart gives us. The chart might have a column for 20 degrees celsius and 30 degrees but the outside air temperature might be 27 degrees. The weight column might offer us 14,500 pounds and 15,500 pounds when the actual wight is 14,735 lbs. So we extrapolate. And if there’s a remainder? I always Round Up! Why? Because I like having the peace of mind knowing there’s a little margin of safety.

INSURANCE OFFERS PEACE OF MIND

I like having the same margin of safety when buying insurance. From my perspective, it’s always better to have and not need, then to need and not have.  My car is insured by a large, reputable insurance company. So is my home. I always buy the best medical insurance I can afford. I skimp on things that aren’t necessary but I never skimp when it comes to feeling assured the necessities in life are secured.

TITLE INSURANCE

Recently I was asked about the difference between an ALTA/Home Owners Policy and a CLTA policy. These policies are referring to Title Insurance.  It’s a common question and I’ve written about it before. Read: Realtor’s And Pilot’s It’s Your Teacher Not You  For a printed table of differences click here:  Homeowners Policy/ALTA vs. CLTA

Lets keep things simple. Realtors: Your Title Insurance company will always default to the ALTA Homeowners Policy. Because in California the C.A.R. contract calls for the best coverage. Easy. You don’t really need to do anything!

Having said this; be wise and always check. Why? Because unless your client is only buying land the Title Insurance Company offers a CLTA policy when a residence doesn’t qualify for an ALTA HOP.  As the Realtor you’d probably have some questions. So check. What the Title Insurance Company is offering, either an ALTA HOP or a CLTA policy is usually on the second page of the prelim.

QUESTION

Does the ALTA HOP cost more than the CLTA policy?

Yes it does. About 10% more.  Think of it this way. For ten percent more you’re buying about 50% more peace of mind.

READY FOR TAKEOFF

“Medivac Charlie Victor Romeo cleared for takeoff runway two five right.” We taxi onto the runway and the engines start to scream. I know we’re going to takeoff safely because we’ve run the numbers and left a margin of safety.  Likewise, you know your clients are going to have the proper coverage they need on what’s undoubtedly their largest personal investment. The ALTA HOP offers a little margin of safety.

Please feel free to leave comments. And Remember, Sharing is Caring. Thank you.

Note:  Besides being a Title Company Account Executive I’m also a Charter Pilot.  Comments made here are my own and do not necessarily belong to my employer; Chicago Title & Escrow or Chrysler Aviation.

Chicago Title has been in business for more than 160 years. It’s a company you can trust.

For more information about Title Insurance contact me directly at:
Ric Lippincott or leave a comment below

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Realtors and Pilots, It’s Your Teacher Not You

I know something about you. At least once in your life you’ve had someone explain something and when they finished you still didn’t understand. For most of my life when this happened I thought maybe I was in the slow lane. I wanted to be in the passing lane. Then I realized something. It’s not you and me. It’s our teachers. Not just school teachers. Anyone who is trying to teach us something throughout life.

When I was learning to fly airplanes on instruments I struggled on the chapter, “How to know if you’ve reached a VOR radial or if you’ve passed it.” The teacher may as well have been speaking in tongues. If you have a “From” flag on your VOR then, is it reverse sensing? Do I spin the OBS to get a “To” flag and move my head to orient myself. Wait. Did I just pass the intersection!

I sell Title Insurance today. And I teach people to fly airplanes. I’ve learned to keep things simple enough for everyone to understand. It’s not your job to understand my complicated pontifications. It’s my responsibility to teach you in a way that you can easily learn.

Yesterday a seasoned Real Estate agent asked me the difference between an ALTA policy (American Land Title Association) and a CLTA (California Land Title Association)  policy. You’d think they might have known the answer to that since they show years in the business on a resume. But instead of blaming them for driving in the slow lane, I blamed myself, and other Title reps before me, for never teaching this Realtor in a way he could remember.

Photo by Ric Lippincott

Am I There Yet?

Pilots. Let’s go back to the VOR for a second. Lets say you’re flying on the 270 radial outbound from station “A”, and you want to intercept the 180 radial from station “B”, (station “B” is to the north of your position), and once intercepted fly the 180 radial inbound. I was taught to tune in station “B”, identify station “B”, then turn the OBS to 180 with a “From” flag and off you go. That’s perfect if you can stay oriented, but which side will the needle be on before you reach the station? For years I would literally turn my head south and imagine which side the needle would be on if I were actually flying south on the 180 radial but had drifted east a little. What? That’s crazy!

Then a wise teacher gave me a little saying that made everything so much easier. He said, “If the station is on the right, and the needle is on the right, you’re not there yet.” Done! That’s all you have to remember.

Lets add a simple truism. If you want to know where you are FROM a station then make sure you see a “From” flag. And if you want to fly TO a station then you’d better see a “To” flag. That’s all you need to remember. The rest will make sense.

Realtors. Here’s all you need to know about ALTA and CLTA policies: A CLTA policy has more exclusions than an ALTA policy and an ALTA policy costs only 10% more than a CLTA policy* so get the policy with more coverage (ALTA) if you can. Why? Because for 10% more in cost you get a lot more in coverage. Done!

Like how much more? Well an ALTA covers the same stuff as a CLTA policy but it also covers other risks, like unrecorded mechanic’s liens, assessments, encumbrances, encroachments, easements, water rights, mining claims, patent reservations, conflicts of boundary lines, shortages in area access to and from the land and more.

That’s how simple flying airplanes and Real Estate can be.

Pilots, if the station’s on the right and the needle’s on the right, you’re not there yet. Realtors, if the property qualifies for an ALTA policy, for only 10% more in cost, get the ALTA policy because it covers more risks. Done!

* Rate based on present published rate at Chicago Title California.

Note: I’m a Title Rep.  (Tie-tél Rep; a person or reptile that scurries through Real Estate Offices and Lending institutions in search of food, stopping at nothing, including stepping on other Title Reps in its pursuit.)  In other words, I sell Title Insurance. Comments made here are my own and do not necessarily belong to Chicago Title.
For more information about Title Insurance or flying airplanes, contact me at ric.Lippincott@ctt.com.

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