A reporter finally questions Title Insurance! 95% profit vs 30% for most other types of insurance?
I don’t want this blog to be about reposting articles but
news articles, but this is the first that I have read that showed some actual stats and questioned Title Insurance. Too bad it was a nationwide article so it wasn’t able to address Virginia specific matters like the required Lenders Title vs the Optional Owner’s Title policy (Va specific).
First you have to have read my
Owner’s Title Insurance.95% Buy It, 10% Know Why!
Then you can read Washington Post’s article Title Insurance Premiums Rose With Housing Boom
Here are some highlights:
- “The American Land Title Association defends the $17 billion industry…” and it goes on to give ONE completely random example of ONE family that benefited from the insurance.
- “Industry experts say only about 4 to 6 percent of title insurance premiums are paid out to satisfy claims. That’s much lower than the 70 percent-plus rate typical of other lines of property and casualty insurance.” Translation: Most insurance is only 30% profit. This insurance is 95% profit. With so little going out to pay claims, is the risk/reward worth it?
Again, this isn’t a recommendation, just food for thought.
NEW: This is a website from somebody that found my blog on title insurance. He got so ticked that there wasn’t proper disclosure that he made the closing company refund him some of his payment and he made a website to make people more aware. I think his facts might be off a little, (also rules change by state) but the point is to get another perspective: http://www.title-ins.com/
– Written by Frank Borges LL0SA- Broker/Owner FranklyRealty.com
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