A recent article from the Land Title Association (ALTA) says fraud & forgery claims represent 21% of the total dollars spent by title insurers on claims expense and losses, with an average claim cost of over $143k. The data comes from an analysis by global consulting and actuarial firm Milliman that also found nearly 30% of title insurers’ losses and claims expenses arose from title problems not discoverable from a public records search.
“The evidence is clear: expert title professionals do so much more than just scan public records or push a button to secure property rights…With the cost of fraud and forgery claims averaging more than twice the national average salary in the U.S., the risk of not purchasing a title insurance policy is far too high. This analysis highlights the significant risk exposure presented by any waiver of title insurance policies on loans purchased by the Government-Sponsored Enterprises or from any unregulated alternative product that does not provide comprehensive coverage against nearly a third of all claims.” Said Diane Tomb, ALTA’s chief executive officer.
Click here to read the full story at ALTA.
