Quite a few people think of title insurance as a scam, but as a business that works in the real estate or title industry, you know better. Title insurance protects property owners and financial institutions against potentially devastating claims against their title or ownership of a property.
While only a fraction of property owners ever need to defend against the title claim, the process can often cost many thousands of dollars. A lender's title policy protects financial institutions such as mortgage companies and banks against the loss of the money they provide to purchase a property that later has a title issue. A buyer's title policy protects the property owner from the losses and costs associated with the title defect.