ALTA Reports '02 Title Claim Total

The title insurance industry paid approximately $582.7 million in claims in 2002, compared with $465.1 million in 2001, according to the American Land Title Association.The payments were made to compensate homeowners for losses they experienced under policies issued to them or their lender, or to defend titles from the claims of others. "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," said James R. Maher, executive vice president of ALTA. "It is equally important to note that the title industry spends more than 10 times the amount it pays in claims to perform title searches and cure these title problems to avoid claims." ALTA estimated that problems arise in one out of every four real estate transactions. The group can be found online at http://www.alta.org.