YOU ASK:

Is title insurance really worth the money? What is the percentage of claims?

WE ANSWER:

Admittedly, the percentage of claims paid over the premiums received is lower as compared to other types of insurance.

Based on reports provided by the insurance industry, title insurance claims payment only amounted to 4 to 5 percent, as compared to the 60 - 75 percent of claims paid for home insurance or auto insurance.

But this does not mean that title insurance is not worth the money you pay for it. Title insurance is often misunderstood and sometimes people tend to think that it is an unnecessary expense. But it can provide a number of benefits to the one holding the title.

For one, the fees also include title checking services that will investigate the existence of clouds in the deed. The title check which comes with your title insurance includes the cost of searching for updated title information, for searching the titles, acting to resolve any clouds or defects in the titles and spending for any legal fees so that such defects are cleared.

This kind of insurance will prevent later losses, which may be substantial in the event that you have to face claims against your title. Although you or even the seller is not aware of any problems that exist with the title, there are a lot of things that may work to cloud up the title. This includes acts of deceit, forged deeds, the appearance of missing heirs and other problems that may crop up and may cause you to lose your title.

The title insurance will help to pay for legal fees that you may spend when someone sues you over the property. It may also help to pay for what you paid for the property (up to certain limits) in the event that you do lose that property.

Also, the premiums you pay for title insurance is a one-time fee. For that payment, the policy will remain in force and protect your interest for as long as you or your heirs own the property.

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