I'm responding to the April 6 Wall Street Journal article, "Title Insurance for Less." As a purchaser of numerous residential and investment properties, I have been instructed to buy title insurance. Why?
The required title search was done by a service represented as a qualified professional. They were compensated for their service. Yet I then was required to buy title insurance in case the title search work was faulty.
Do we have to do this with doctors, dentists, electricians, plumbers or insurance agents? They have and pay for their own job performance insurance.
Has anyone checked the losses paid or the amount of commissions paid by this insurance? Title insurance is a cash cow for insurers and sellers.
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Reducing the premium charged may be a positive step, but the full premium would still be paid by the customer. It is time the title search services pay the cost of their job performance insurance as other services do. That cost would then be reflected in their charges for title search service. However, the shift should motivate better work product, insurance premium competition and eliminate the full cost burden from each title search customer.
Hilton Head Island