True or False: Is Title Insurance one of the kinds of insurances that never has to pay?
The answer is False
The job of a title insurance company is to look at the property, deal with title problems, and assess the risk. They try to minimize that risk with a thorough title search, a search of public records, looking for anyone else who might have ownership rights or interest in the property.
I have a story for every question. I’ve been in the business long enough that I can give you an example for every situation, often more than one, but I’ll limit myself to one here.
There was a lady who wanted a trust created, but she was mad at her family and wanted to give her house to the guy who had been so nice and had taken such good care of her. When she died, he got the house, and sure enough, her kids challenged his ownership. They sued him for what they felt was their rightful inheritance.
Even though the guy had gotten the house free and clear, he did not have the money to defend himself in a court of law against their claim. Fortunately he had gotten a title insurance policy on the house, and that policy paid his court cost. Completely.
Yes the title insurance company did pay out on the policy. It happens more often than you think.