Palm Beach Post Letter to the Editor
July 14, 2013
ALTA responds to Palm Beach Post Article "Rate Relief on Title Insurance?"
July 19, 2013 - Your July 13 piece, “Rate Relief on Title Insurance?” expresses concern about title insurance rates in Florida, and we want to take this opportunity to clarify a few things about the land title industry. The link to the original article is not available.
Readers deserve to be properly educated. This article should explain how rates are set in Florida and explain how title insurance protects consumers. The land title insurance industry has taken many steps to improve transparency in fees and the Florida Land Title Association (FLTA) encourages consumers to become educated on title insurance when purchasing a home. When comparing fees, consumers should always consider all of the associated costs and get detailed information on what is included in their fees. Each state sets rates differently and in Florida, the Office of Insurance Regulation sets rates to ensure title insurer solvency – a regulatory structure designed to protect consumers should they ever have to file a claim. The FLTA promoted legislation last year authorizing the collection of necessary financial data so the state can conduct a proper rate review and once again set a fair and reasonable title insurance rate for consumers.
No other line of insurance matches the level of due diligence performed by the title insurance industry. Unlike other lines of insurance, homeowners pay a one-time fee to receive protection for as long they own their home. Comparing this cost to that of auto insurance, for example, shows how different the fees are for insuring what is one of the single largest investments a consumer makes: their home.
Title insurance is more important than ever in providing protection to homeowners due to the volume of foreclosures in recent years and Florida currently leads the nation in fraud.
Recently, a real estate agent posted online this great example of how several unsuspecting homebuyers in Virginia were fraudulently sold vacant properties. An Owner’s Title Insurance policy would have protected the buyers in this situation. For more information on title insurance and fees, go to www.homeclosing101.org.
Contact ALTA at 202-296-3671 or communications@alta.org.