What products do you provide and can you give advice on?
REassurance is primarily a real estate focused brokerage and we traditionally offer products and services to that sector. We have a strong focus upon W&I, Title, Environmental and Shares cover. We are flexible to help source other insurance for your requirements.
What is the difference between W&I insurance and title insurance?
Though both insurance products have similarities they have important differences, usually with W&I insurance all known identified issues in the buyers DD are excluded from cover, the parties are expected to negotiate the reps and warranties fully then the W&I policy mirrors the warranties given in the SPA. whereas with a title policy the underwriters can agree to endorse the policy to cover off those identified risks that relate to title or property permits.
The other difference is the duration, typically a WI policy will expire when the reps and warranties expire in the SPA typically 5 to 7 years (maybe 8 years for tax). A title policy on the other hand is valid for as long as the owner owns the real estate, the policy can also be assigned to the first purchaser to allow a clean down stream exit.
What insurers do you use?
At REassurance we have access and relationships with both the large multinational insurers who are leaders in their field, as well as working with smaller specialist insurers and MGA's. Whatever your requirement we can find an insurer to fit.
Who are your clients?
Our experience has meant that we have worked with lawyers, investment funds, banks, developers and in some cases even with administrators assisting a liquidation. Frequently we will support the transaction process and coordinate between lawyers and insurers to find the best solution.
How long does it take to get insurance?
That will depend on a number of factors. The type of insurance required and the complexity of the transaction e.g. a single asset or portfolio deal. In our experience title and title to shares is generally quicker and easier to underwrite than a W&I policy which can take longer to review and contain more complexities.
What does a W&I policy cover?
W&I insurance will be able to cover most of the warranties in any acquisition agreement, however, insuring against most of the warranties will have an impact on the premium. The benefit of W&I is that a buyer or seller can be selective and a W&I policy can be structured to only cover specific warranties and representations.
What kinds of defects does title insurance protect you from?
It protects you against loss due to title defects, liens, or other similar matters. Title insurance protects you from claims of ownership by other parties and against losses from problems that arose before you bought the property. Additionally, the title company will defend you in court if there is a claim against your property, and will pay for covered losses.
How much does insurance cost?
The cost of the insurance will be determined by many factors – covered risks, value of cover (indemnity level), length of cover etc. In our long experience we have found that no two transactions are the same and that is why we use our experience and knowledge to offer a bespoke service to each client need.
Can I use W&I as well as the title?
Yes, we often recommend to our clients to consider using both products at the same time. The title policy offers a higher protection both to cover not only the warranty period but also for the whole duration of ownership. A W&I policy will usually lapse after a set period and if, for example, the warranty cap was 10% of the transaction value that wouldn't be entirely suitable for a title warranty where it’s a natural requirement to be insured for the full purchase price or future value in the case of a development all of the time.
Depending on the complexities other insurance products could also be used alongside.
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