A necessary evil: Confusion clouds title insurance

Gazette Xtra writes, "Whether the discussion is mortgage foreclosures, consolidation in the banking industry, declining auto sales or struggling retailers, the nation’s housing market has been a hot topic in the last 18 months."

"Often absent from the discussion, however, is title insurance, a $16 billion industry that consumer advocates and government regulators say few people understand yet blindly feed whenever they buy, sell or refinance a home or property."

"Consumer groups say buyers aren’t clear on what title insurance is, rarely question how much it costs and routinely follow the recommendation of their real estate agent or banker on whom to buy it from."

"Title insurance covers claims and legal fees for homebuyers and lenders if problems arise over ownership of the property. It often covers errors in deeds, boundary disputes, fraud and forgery, liens for unpaid taxes or bills and missing heirs who may appear with a claim to the property."