Title insurance, unlike auto or health insurance, works under the theory of risk elimination – rather than compensate *after* an issue arises with ownership of a property, we work to identify and clear those issues before a property changes hands. Title companies maintain title “plants” (basically archives) that collect and index land ownership records from clerks’ office, which we use to research the history of a property before issuing an “examination” of the title. Two sets of experts review this research before the sale proceeds (the title examiner, and at Shemtov Title, the agent-in-charge) and if any issues are identified, they are disclosed to all parties and worked to “clear” (resolve) before the transaction closes.
Title insurance investigates and eliminates risk and claims, and collects only the single premium at closing/refinance, so it's actually a bit opposite how "normal" insurance products work.
Association lends support to title insurance legislation
The American Land Title Association (ALTA) has announced its support for the TRID Improvement Act, a bipartisan approach to improving the title insurance purchasing process for buyers of real estate. Current regulations require that title agents hide the premium discount given for title insurance when a loan policy is purchased, which means that agents appear to be charging a much larger amount than is actually due. This act would lift that requirement, allowing agents to accurately disclose settlement costs at all stages of the transaction.
Downtown Fort Myers hotel project threatened by missed wording in 82-year-old deed
The construction of a convention hotel in downtown Fort Myers, a project that has been years in the making, has been stalled by a title examiner's discovery that the property was deeded to the city with the restriction that it not be used for commercial development.