The Economics of Everyday Things 62. Title Insurance
Sep 9, 2024
Many homebuyers spend a fortune on title insurance but often don’t grasp its value. This discussion reveals how title insurance protects against unexpected claims and its role in real estate. Personal stories illustrate its importance, while the conversation explores the industry's low loss ratios, showcasing its effective risk management. Additionally, the podcast addresses systemic issues consumers face and discusses potential reforms to traditional practices, including the use of attorney opinion letters as alternatives.
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Surprise Visitor
- Christy Bieber bought a house and later a woman claimed to own it.
- Title insurance quickly resolved the issue, proving Bieber's ownership.
Alternative Protections
- Title insurance protects homeowners' largest asset.
- However, less costly alternatives may provide similar protection.
Title Insurance Origins
- Title insurance protects against undiscovered title conflicts arising after a property purchase.
- The first title insurance company was founded in 1876 by Philadelphia lawyers.