Isn't the premium expensive?

One of the most common ways to arrive at insurance premiums is to forecast likely losses and add administrative expenses and profit. It is not unusual for 90% of the premium amount to be paid out for claims.

In the title insurance business, on the other hand, the industry may pay out only 8% to 15% of the fee for claims, and people often assume that the rest is profit. But only a small part of the one-time fee paid at settlement is for insurance; the remainder is the cost of conducting the many different searches required to show a clear title to the property and preforming the settlement services.  All investigative work is done up-front in order to eliminate the potential for claims in the future.  See What we do for you to get more information on the work that goes into your settlement.

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