$16 billion for title insurance?
If you could scan the entire American economy for money that is thrown away -- gift cards never redeemed, home gyms never used, etc. -- one of the biggest piles you would find is the title insurance industry. Sixteen billion a year -- that's nearly double the size of what Hollywood movies gross in a year in American theaters.
From LATimes.com: "Americans spend more than $16 billion annually for title insurance when buying, selling or refinancing their homes. But few people question the expense, even though they're probably paying too much, say consumer advocates and government regulators."
And I must admit that this is one that I never really thought to much about. I knew you had to have it before most mortgage companies would do a loan but never really thought about "shopping" around.
Anyone have suggestions on how to even go about shopping around for this? [/quote]
Total Comments: 7
Posted: Sat Feb 09, 2008 10:08 am Post Subject:
And I must admit that this is one that I never really thought to much about.
Neither did I. We all take a title policy to facilitate the mortgage process. And its has become kind of mandatory in order to obtain mortgage loan. No wonder this industry is making huge profit.
Posted: Sat Feb 09, 2008 10:26 am Post Subject:
Unfortunately, you may not have much scope to lower the cost of premium of your title insurance. Most of the states regulate the title insurance cost. However, you can bargain over the search fee, charged by the title insurance company, if its not regulated by the state authority as well.
Hunting for the insurance company of your own may, at times, pay-off at better rates. Therefore, inform your attorney or the bank if you feel the charges are too high. Try to get them lowered or search for an insurer by yourself.
Posted: Sat Feb 09, 2008 11:00 am Post Subject:
Title insurance is to smoothen the property transaction process. It ensures the peace of mind for all the buyer, seller and of the financier. It may prove beneficial if you are planning to sell your property within two years time.
But yeah, one should compare the costs of the policy before signing the policy documents. At the same time, don't forget to check the background and authenticity of the company. You may not wish to land up in mess with the property title just for the sake of saving money.
Posted: Wed Feb 13, 2008 07:31 pm Post Subject: Info on Insurance Fraud
Title Insurance fraud is a real problem and under investigation in several state, including New York, California, Florida And Colorado. Anyone who buys a home or refinances has to buy title insurance, but unfortunately, most consumers know very little about the product. Many people have been over charged by hundreds of dollars for insurance without ever realizing it. The four companies that control the insurance market in the US have been accused of price fixing and paying kickbacks to real estate agents, brokers and others who recommend title insurance companies to consumers. You can find more information on insurance fraud, how it affects the average consumer, and ways to recoup overcharges at this yourlawyer.com under "Other Topics" and "Title Insurance Price Fixing".
Posted: Tue Jul 08, 2008 10:12 am Post Subject:
Hi, can someone explain to me what is covered under the title insurance policy?
Posted: Tue Jul 08, 2008 10:42 am Post Subject:
Hi guest, the title insurance policy protects the owner or the lender from any unforeseen event that may thwart the mortgage process. The title search agency look-up for the breakages and interruptions in the title chain, to confirm that the title has changed from the original title holder to the current owner smoothly. They also check whether there is any hidden lien on the property or not.
Title insurance, is therefore the best way to ensure the peace of mind at the time of transacting property to taking out mortgage.
Posted: Tue Jul 08, 2008 10:53 am Post Subject:
Hey Birmingham dweller is right, it may sound as an wastage to many, but Title insurance is an important part of property transaction. The mortgagor insists upon taking out the policy to ensure that the financial losses will be covered at the event of an error in the title.
There are variety of these insurance policies available in the market, but the top threes are- basic owner's title coverage policy, basic lender's title insurance and extended owner's title insurance.