hoj. Home Insurance. December 30th , 2017.
What you are liable to pay as premium under title insurance can vary from country to country. But in the United States, the administration has set a parameter to determine what you will be liable to pay as premium. This is because the states have realized how valuable title insurance has become and they are doing every reasonable effort to safeguard the interest of home buyers from insurers. The administration does this by getting the details of all the expenses that consumers are obliged to pay to insurers. The administration will scrutinize this ahead of accepting it and the expenses will then be made public. Keep in mind that it will be impossible for fraudulent insurers to defraud consumers through this means.
On the other hand, there are some jurisdictions which give the right to a lawyer to scrutinize the provisions of the policy. This lawyer will neither be that of the insurer or the consumer. This is a good way to ensure that the rights of both parties are secure because a party may be tempted to cancel the agreement at any point after the agreement has already gone into force. Also, it may sometimes be provided that extra expenditures to take care of the services of the lawyer will be borne by the consumer. There are also other hidden costs that the consumer may be liable to pay. An example of this is the cost of what the insurer will bear when trying to find out who has or who does not have a valid title over the property. In some cases, these expenses may be taken off by the insurer, although they may still in one way or the other, be included into the premium that the consumer pays.
What Is The Cost Of Title Insurance?
There are no specific expenses if we have to look at what the various states may impose. Keep in mind that the state has the power to decide on what the consumer will have to pay or on what the insurer will charge for title insurance. For example, to protect an interest of about $180,000, the property owner will have to pay something between $700 in Maine to $1,400 in Texas.
Perhaps, the biggest title insurer in the United States and even abroad is First American Title Insurance Company. It controls almost up to a third of the title insurance industry, making the largest insurer under this domain. Perhaps, one of the reasons why they are the largest is that the quality of the services they render to the general public is more than excellent. Another reason might be that they are rich will all the capabilities to run all their policies.
A strong challenger in the title insurance scene is Fidelity National Financial, controlling about one quarter of the title insurance market. Thus, almost 60% of the title insurance market is controlled by just two insurers. If we have to think of the fact that the consumer should be given so many choices to select from, the type of consortium which these two insurers have made and their ability to influence the market may mean that consumers will be left with little or no choice.
What is the cost of getting title insurance? It has been realized that a surplus of about $15 billion is gotten from the premium that consumers pay. What is more interesting is that only 4% of this sum is given out to take care of claims. This will mean that insurers are charging the consumers very dearly. But again, they may have a good reason for this if we have to take into account the risk that is found in the uncertainty in which they insure, the procedure that they go through to verify that title is authentic and a lot more others. Remember that just the satisfaction derived from paying for a property over which no strings or claims are attached to is a simple reason to pay dearly for title insurance.
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