Originally Posted by Gumby
A good post. Only one quibble. The majority of the money designated as "title insurance" in a closing is actually a premium to the closing attorney. The title insurance company keeps very little to insure against defects in the title (which actually strengthens your point).
Wow... this discussion brings up an important aspect of buying a home that no one (or very few) ever consider.... Solvency and Financial Strength of the Title Insurance Company.
Financial Stability RatingsŪ Title Insurance Companies
Since Title Insurance protect the Bank (unless one has an owner's policy).... hopefully banks are careful selecting their title insurance company.
But how many owners have done a due diligence check-up on their Title Insurance Company or purchased an Owner's Policy?
My guess is only people who hired a real estate attorney or did a lot of research.
We bought an Owner's Policy when we purchased our house. I relied on my attorney. He counseled us to buy an owners policy.
Title insurance in the United States - Wikipedia, the free encyclopedia
To complicate matters, it seems many title insurance companies use reinsurers.
Does anyone know if Title Insurance is backed by states if they fail (like other insurance policies)?