Interesting point, but I disagree that title insurance is a "ripoff".  In fact, I would say that title insurance is even more important today than it was a decade ago.  About 6 years ago I took a real estate class and the textbook plainly said that 99% of the time, if you can get title insurance - you don't need it.  The reason was that the title companies thoroughly researched the records and fixed any title defects before they issued the policy.  This meant that in the course of issuing the insurance the issuing company made sure you had good title.

Of course, over the past several years that has not been the case.  Title companies are not "fixing" the problems.  Now that the companies are issuing policies on current owners, they aren't even checking for marketable title.  Often when defects are found, they are insured over.

This means that now, you "need" the policy more than ever.  If a claim arises that challenges your title, an Owner's Policy is your best protection.

Things were better before, when the title companies were actually making sure that you had marketable title before they issued the policy - sure there was less of a chance that you would ever make a claim on the policy, but that is a good thing.  I would rather pay the fee for title insurance and never have to use it, than not pay the premium and have a claim.

This is the worst thing that the title industry has ever seen - insurable title, rather than marketable title.

Best,
Robert A. Franco
SOURCE OF TITLE