Is Title Insurance A Scam?
Even though I think very HIGHLY of the need for a detailed title search when buying real estate and would NEVER purchase a property without having done a detailed title search, I do NOT think very highly of title insurance. What is the difference? Title Insurance is issued by a Title company AFTER they have run their title search and have satisfactorily identified and removed any clouds on title that they found. Until this point, I am all for it and I LOVE it. However once they have satisfied these requirements they then agree (for a fee) to issue Title insurance on this property. The problem here is that in that contract they exclude anything that could harm them, and basically what you get is an almost worthless kind of insurance that you have to pay money for. So, for example, the typical standard title insurance you probably have on your house, if you go open your file drawer and look for your policy, if you own a home – and if not, ask to look at a friend’s policy – is what’s call
