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Small-Scale Question Sunday for August 25, 2024

Do you have a dumb question that you're kind of embarrassed to ask in the main thread? Is there something you're just not sure about?

This is your opportunity to ask questions. No question too simple or too silly.

Culture war topics are accepted, and proposals for a better intro post are appreciated.

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The loss ratio for title insurance includes all of the legal and administrative fees necessary to resolve the claim, up to and including straight up reimbursement. So yes, the sevarity of a valid claim is quite high, its just that claims are incredibly rare. I would also point out that compared to most other types of insurance, the overhead for title insurance is very, very low.

I dont think the argument is that title insurance shouldnt exist, its that the price has been spiked by absurb multiples due to effective collusion of the providers and their related industry contacts, and that property buyers are less aware of this price gouging due to the peculiar nature of real estate transactions.