Stewart got its start in the title insurance business more than 100 years ago and has since branched out to offer real estate escrow, mortgage origination, closing and other housing-related services. In terms of corporate structure, Stewart Information Services owns Stewart Title Guaranty Co., which owns local Stewart branches in each state. Stewart sells its title policies through these local branches and through other independent agents.
Stewart is distinctive among title insurance companies in that it markets some of its services directly to consumers, who are invited to close their loans at Stewart offices. Also, Stewart is in the vanguard of online technology. Independent title insurance agents doing business with Stewart can find everything they need to write and offer a policy on an intranet available through the Stewart website.
Types of Coverage Offered by Stewart Title
Title insurance comes in two flavors: lender's insurance and owner's insurance. Stewart sells both.
Lender's Title Policy: This kind of title insurance protects mortgage lenders (for the most part, banks) from losses that occur due to problems with the title. Lenders who buy title insurance are essentially purchasing a guarantee that they are making a loan to an owner who does in fact own title, and they are obtaining protection from financial losses that may result if there are problems with the title. Furthermore, regulations require lenders to purchase title insurance.
Owner's Title Policy: Owners must buy title insurance in order for the mortgage lender to do business with them. Typically, owners do not shop for title insurance, but acquire it on the recommendation of the lender. This is where Stewart is different from some of its competitors, since it markets title insurance directly to consumers, typically in combination with escrow services. In cases where Stewart acts as both the escrow services and title insurance provider, consumers can sign their home closing documents in a Stewart office rather than in a bank.
Title insurance policies rarely need to be invoked, since the insurer does a great deal of preliminary research to ensure that the title passing to a new owner is clean. For the most part, title insurance policies simply guarantee peace of mind to both the lender and the owner in case the title is later contested.
Stewart Title's Costs and Fees
For owners, title insurance is a one-time premium paid at closing. The amount of coverage can vary, but the lender will often require at minimum that it cover the value of your home. The cost of the premium is also variable, depending on your location and other factors. As an example of the price range, Stewart of Wichita Falls discloses that the cost of $300,000 title insurance coverage is currently $1,975.
How to Contact Stewart Title
Independent title insurance agents who are looking to resell Stewart policies for a commission (which can be between 80 and 85% of the total policy) can go directly to Stewart.com, where there is a Web page dedicated to serving their needs. Potential owners who are interested in proactively obtaining Stewart title insurance and/or escrow services should do a Web search for Stewart branches in their state.
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