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Marcus Said:

What is Title Insurance? Moreover, what does it promise?

We Answered:

It's a bunch of crap if you ask me.

If someone unbeknownst to you enters a valid claim for title to your property (and thus has legal grounds to take your property), the title insurance will pay you for your loss of property (or pay the bank).

For example, if native americans make rightful claim to your property because your land is on native american burial land (or insert crazy excuse) that was never meant to be proffered to others and you lose your land/property because of it --- title insurance to the rescue.

I believe that banks force this on lenders just to cover their you know what and title insurance companies are in in with the mortgage brokers, realtors, and all the other "friends" you encounter in your lovely home purchasing experience - to get their fingers in the pie.

In hindsight, I should have demanded 3 quotes for title insurance from my realtor. In fact, I caught a headline that (Great American I believe) some title insurance companies for rigging prices and colluding with the aforementioned "friends" you'll encounter.