Title insurance, unlike auto or health insurance, works under the theory of risk elimination – rather than compensate *after* an issue arises with ownership of a property, we work to identify and clear those issues before a property changes hands. Title companies maintain title “plants” (basically archives) that collect and index land ownership records from clerks’ office, which we use to research the history of a property before issuing an “examination” of the title. Two sets of experts review this research before the sale proceeds (the title examiner, and at Shemtov Title, the agent-in-charge) and if any issues are identified, they are disclosed to all parties and worked to “clear” (resolve) before the transaction closes.
Title insurance investigates and eliminates risk and claims, and collects only the single premium at closing/refinance, so it’s actually a bit opposite how “normal” insurance products work.
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