Gap Insurance

Gap Insurance
Do you know what Gap Insurance is? Too often I hear the statement, "I never knew that", after explaining to a customer the options available for Gap Insurance.

Simply put, Gap Insurance is an extension of Title Insurance that covers the "gap" between the date the county is contacted to check the condition of the title of a property and the closing date when the title is actually transferred to the new owner. This gap of time usually covers only a few days and until recently has rarely been a problem. With the increased use of the Internet, particularly in the use of obtaining second mortgages on a home, there has been an increase in mortgage fraud over recent years. To combat this growing problem and help protect buyers, the GMAR (Greater Milwaukee Association of Realtors) has introduced a revised Greater Milwaukee Addendum A in January of 2005. This revised version now has standard language that offers GAP ENDORSEMENT added on lines 207 to 209. It is strongly recommended to carefully consider the options associated with the GAP ENDORSEMENT.