FOR IMMEDIATE RELEASE
ALTA Press Release
$661.7 Million Paid in Title Claims in 2003 |
Washington, DC - The American Land Title Association (ALTA) has
released the results of a recent industry study showing that title insurers paid
approximately $661.7 million in claims in 2003, compared to $582.7 million the
previous year. These payments were made to, or on behalf of, insured homeowners
for losses they experienced under policies issued to them or their lender, or to
defend those titles from the claims of others.
“For more than 125 years, title insurance companies have protected the
interests of homebuyers through a process that has given Americans a sense of
comfort and security in what is almost always their most significant investment
– their homes,” said James R. Maher, executive vice president of ALTA.
“The public misperception that title insurers do not pay substantial claims
results from a lack of understanding of what title insurance is and how it
protects homeowners. It is equally important to note that the title industry
spends more than 10 times the amount it pays in claims to perform title searches
and cure these title problems to avoid claims,” said Maher.
Unlike other forms of insurance, title insurance is based on actions that have
already occurred, not on what may occur in the future. This is because property
can be used for many different purposes over a long period of time and as a
result be subjected to numerous claims. A title search of the public records is
the starting point for a professional title search. This search will determine
who owns the property and what interests already exist in that property.
Problems discovered in the title search are generally resolved before the
homebuyer closes on the property. Often, court action or other steps must be
taken to resolve the problem. Many times, buyers are never even aware of these
problems because title professionals have resolved them without delaying the
closing or bothering the buyer. Problems with title arise more frequently than
is generally assumed. An ALTA survey of 420 abstracters and agent operations
showed that title problems arise in one out of every four real estate
transactions. Because of the research and corrective work that title agents
perform, it is rare for homeowners to suffer a loss under their title insurance
policy. According to Maher, title insurance plays an important role in the home
buying process because it protects buyers and mortgage lenders from the
potential financial losses that title problems can cause. “The truth is that
claims do happen more frequently than people think,” said Maher. “Title
insurance not only buys you protection from financial loss, it buys you peace of
mind.”
The American Land Title Association represents title insurance companies and their agencies nationwide on a variety of industry and legislative issues. Members of the Association search and insure land titles to protect real estate investors including homebuyers and mortgage lenders.
For More Information Contact:
Preferred Land Title Company
12 W. First Street Farmington MO 63640
Tel: 573-756-6721
FAX: 573-756-4663
Internet: lisabrotherton@landchoice.net
