Found out title insurance is basically a scam after a nightmare closing

I read on a real estate lawyer's blog that title insurance pays out claims less than 5% of the time, yet every lender forces you to buy it. Paid $1,200 for a policy that does nothing 95% of the time how is this legal?

3 comments

3 Comments

sandragrant4d ago

Man, insurance is just legalized gambling where the house always wins.

zaranelson4d ago

Insurance is just betting against your own house.

nora_webb514d ago

My buddy actually cashed in his whole life policy a few years back when his kid got sick, and that money saved them from losing their house. So I get the frustration with how insurance companies run things, they make billions off people who never file a claim. But calling it a bet on your own house feels a little off to me. You're really just pooling risk with a bunch of other people so one bad day doesn't wreck everything you've got. The house always wins in gambling, but with insurance, you win if you actually need it and they pay out. Take it from someone who's seen a flooded basement destroy a family's savings, sometimes that bet is the only thing standing between you and starting over from scratch.