American Land Title Association
Print Friendly
Home  >  News Room
News Room

SoftPro is the nation's leading provider of Real Estate Closing and Title Insurance software

North American Title Insurance Company is a seasoned title insurance underwriter that has been helping customers achieve the American dream of homeownership for more than 50 years. In the past several years, we have become known as the “underwriter next door,� because our associates are always easy to reach and our processes are, at all times, quick and straightforward. Our agency application process is fast and transparent for qualified agents. NATIC offers a one-hour underwriting response guarantee that is unparallelled in our industry. In addition, we value our agents based on their title industry knowledge and experience, not just on profits alone.

$460 Million In Title Claims Paid In 2001 Says American Land Title Association®

August 26, 2002

WASHINGTON -- August 26, 2002--Washington, DC- The American Land Title Association (ALTA) has released the results of a recent industry survey showing that title insurers paid approximately $460 million in claims in 2001, compared to $350 million the previous year. These payments were made to compensate insured homeowners for losses they experienced under policies issued to them, or to defend their 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 many times what 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. In 2001, this would equal about 1.6 million of the 6.5 million residential sales real estate transactions closed. 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."

Source: American Land Title Association®

Print Friendly

How To Find Us:
American Land Title Association
1800 M Street, NW, Suite 300S
Washington, D.C. 20036-5828
P. 202.296.3671 F. 202.223.5843
Copyright © 2004-2016 American Land Title Association. All rights reserved.
SecurityMetrics for PCI Compliance, QSA, IDS, Penetration Testing, Forensics, and Vulnerability Assessment