Reply to Owner's Title Insurance

Forum Index » Real Estate

Reply to "Owner's Title Insurance"

Subject:

Emoticons





More smilies

Text Color: Font: Close Marks

[quote=Anonymous][quote=Anonymous][quote=Anonymous]Do you need Life insurance, health insurance, home owner's insurance?

Title insurance is this best priced insurance in town, for a one time premimun you are covered as long as you have an interest in the property.  Ask your car insurance company how much they would charge you one time to cover you as long as you own your car. When they're done laughing you'll be told its not possible.

Your title policy covers you for things that no amount of searching and examing can find, forgeries, incompetency, and unknown heirs for example.

Sent while I'm working on a bunch of title insurance claims.[/quote]

Thanks for giving us the official industry propaganda.  Title insurance payout rates are around 4-6% (in other words, for every $1000 in premiums, the industry pays about $40-$60 in claims).  It's massively overpriced.  [/quote]

But title insurance isn't like other types of insurance.  Title insurance companies prevent claims before they happen, using considerable man hours (in most cases numerous attorney hours).  The equivalent would be how much would you pay your homeowner's insurance company if they fireproofed your house for you before selling you the policy.  Claims payout is low because hundreds or thousands of dollars of legal work is put into preventing claims before you buy.

I should also point out that title insurance is one of the few fields where people expect not to pay if their transaction doesn't happen.  20-40% of all open title orders never close (home inspection issues, appraisal, cold feet).  The title company still puts in hundreds or thousands of dollars, but no one expects to pay for some odd reason.

For those reading this, ask yourself if your refinance didn't happen because of an appraisal issue, if you thought to call the title company and offer them payment for the work (and out of pocket expenses), they actually incurred.  I'm not saying that title companies should charge, I am simply suggesting that part of the reason title insurance is perceived to be expensive is because you are paying for the cancelled transactions.[/quote]

Options

	Disable HTML in this message
	Disable BB Code in this message
	Disable smilies in this message

Review message

Search Recent Topics Hottest Topics