Opting Out of Title Insurance

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its equivalent to your mechanic performing a maintenance inspection of your vehicle and then selling you a policy that the car will start when you pick it up. When you drive the car home and it doesn't start the next time you need to use the car, the policy is no longer in effect.

SW of WA 2:03PM April 01, 2012

5 % of premium is paid on claims!?!?! Even assuming 20% management expense, that's a whopping 75% profit margin. What a racket!! I'm in the wrong business...
Consumers getting screwed on the premium.

ar of TX 4:29PM February 29, 2012

So, the sellers and buyers are insuring the Title Companies against their failure to properly research land titles against any claims? Ridiculous!

phv5555 of AZ 3:34PM February 24, 2012

5 Tips on Why You Need Title Insurance
1) What is Title Insurance?
To read the full text please go to Facebook - Expert Title Insurance - Discussion
http://www.facebook.com/profile.php?id=510205362#!/topic.php?uid=157744040922800&topic=753
There you will find an excellent title insurance perspective on exactly why you as a homeowner or as a lender would need title insurance, how save money on title insurance, what might happen if you don't buy a policy,

Rafael Castellanos of NY 5:02PM March 23, 2011

Before you opt out of mainstream title underwriters you should consider the financial stability of alternate title insurance underwriters. What is the total amount of money held to pay claims? Will that underwriter be able to pay your claim or will you be facing brick wall if and when that times comes?

Mr. John C of NY 7:55AM March 23, 2011

my question is if i have lived in my house for 20 ,have a great neighbor on my property line, why am I supposed to get title insurance on my house. this is a refi?

eileen of DE 4:04PM November 11, 2010

hello all.let me put it this way.many will write me off n many will say,he s realisticn practible.ready ? being 57 yrs ,irishman,with more money than most, i still feel broke.i hated the cost of 2 engagement rings,but paid,i hate 17kreal estate tax,but pay.i despise the gas pumps the airlines,but pay.i cant stand total cost of 2 golf clubs,but pay.called myself a jerk for paying 49k for a car,but paid.i said 30 yrs ago, my 2 kids will go to city college.well i paid$350k for both, and,ps,city college would have been finr,but they heard about college party life,n of course i pd. i disagreed buying both a car in freshman yr,n trust me,im hard as nails,but i paid.shall i continue? no,u all have similiar stories.the guy who did nt buy title ins,has guts n not just brains.i cant fault him,but buying n developing over 40 deeds in my life, i hated the cost,but i paid,for i also have heard of those 5 homeowners getting screwed n cant sell with a major cloud on title.im a gambler but i aint dumb, n that dont mean the man who said no is dumb,but ask yourself.your spending from 250k to 5 mill k.is saving a few thousand over yrs of occupancy woth it,if your the one held holding a cloudy title?

tom of NY 12:48AM May 17, 2010

The article correctly focuses on the cost of an owner's title insurance policy as being the catalyst for homeowners to consider the risk vs. reward equation of not buying a policy, but there are several other ways to save on the price of the policy that may make for an easier decision and therefore not leave the homeowner exposed. For example, if a lender's policy must be purchased as part of the closing transaction, then the owner's policy is often offered at what is called a simultaneous rate, which is a discounted rate offered when multiple policies are purchased for the same property/loan at the same time. A major portion of the cost of a title insurance policy is represented by an agent's commission; however, a new model of selling title insurance directly to consumers is being pioneered by a title insurance company called Entitle Direct (of which I am CIO).
Entitle Direct's model offers title insurance at a savings of 35% or more over competitors in 28 states, with more being added all the time; our coverage areas and a free quote can be obtained at http://www.entitledirect.com.
Ti of NM's post about reading the exceptions in your policy is also prudent advice; owner's title insurance policies come in 2 varieties: basic and enhanced. A basic policy only protects the purchaser from title risks as of the date the policy is purchased. An enhanced policy provides the basic protections but also protects against issues that can arise following the policy date, such as post policy forgery and identity theft, building permit violations of previous owners, violations of restrictive covenants, inability to access the property, and zoning law violations. Therefore, when you obtain a quote on an owner's title policy, it is wise to be aware of the type of policy that you will be provided. As an example, the online quotes that Entitle Direct currently provides are for enhanced policies.

Fred Kauber of CT 6:12PM January 08, 2009

If you get title insurance, make sure to look at the exceptions carefully. One of the exceptions to my title insurance policy is that I'm not covered if there is a challenge to my boundaries unless I purchase extra insurance and have an additional survey. It seems as though I'm not really covered on anything that hasn't come up on the title search already unless I pay for extra coverage, so I'm not sure what really comes with the basic coverage. I personally don't think I need the boundary coverage, but just check into this because it could make a big difference in what kind of protection you get.
For example, my builder is just finishing building my house and the title search revealed a number of mechanics liens already. Unless I buy extra coverage to cover mechanics liens that haven't been filed yet, I won't be covered for new liens even if my title is clear the day of closing. I could face liens on my property for the contractor's unpaid bills. Since my contractor has not paid many of his bills, it seems like there will probably be more liens on my property after I close because the time limit for filing liens has not expired. I'm glad I read the fine print because I definitely want this extra coverage.

Ti of NM 6:51PM August 14, 2008

The articles reference to the fact that title insurance will kick in and pay court costs on a boundary dispute is a very example of how title insurance protects against more than just simple vetsing of the ownership in land. For the most part the best way to think about title insurance is a product guarantee. It is a one time fee that covers one as long as they own the property with an owner's policy and covers the lender's interest for the life of the loan with a loan policy. Many liens or defects in title are discovered before the closing and thus cleared up then to ensure clear title and all liens are satisfied when property is sold. It is a type of insurance that you hope you never have to use, like fire insurance, but you would be in a bad place without if you ever needed it. There are many many things that can effect ownership and interests in property, the smart thing to do is get title insurance so that you are covered in case one of these many things surfaces and affects your property.
Sorry to disappoint claims guy (Peter A. of VA), but your analysis of the amount of claims is slightly off base. The reason the underwriters are adding to their claims reserve and that there will be more claims is a result of the cycle in the real estate market. Title insurance is not unlike other parts of the real estate industry that are effected by the ups and downs of the market. When volume is high title insurance companies make large amounts of money which they can use to build reserves for the not so great times or invest in technology as the industry is ever changing and tough to keep up with. This also attracts others to join the industry in hopes of a quick buck. Problems resulting in claims do take some time after closing to come to light. Claims will go up for two reasons: 1) Just a couple of years ago the title industry experienced two record high years in a row in business volume. More volumes means more claims, even if the claim percentages stay in the 5-6% range. 2) These others entering the industry that I mentioned before can also affect claims. Some new to the title insurance industry are only attracted by their visions of easy money. They are not always interested in doing the job right and these types will go away as quickly as they showed up when the business volume drops again. The poor work of these extras to the industry can result in and increase in the amount of claims as well.
Please don't think that I believe that all new title insurance companies are bad. That is not belief at all I am just under the opinion that, like other industries, a up turn in the market attracts many new players to the field. This increase can include some companies that do not offer the same quality of product or expertise as those that have been in the industry for say 100 years. These not so great companies typically compete with price alone. It is kind of like buying cheap trash bags. It is nice to save a buck at the store, but not so nice later when you are picking up all of your garbage off of your kitchen floor.

Jeremy D. of MO 1:20PM June 23, 2008