Escrow Services, Title Insurance, Liability Insurance

If you’ve ever bought a home you’re probably familiar with escrow services. For those you haven’t escrow services play a valuable role. Escrow services allow transactions involving large sums of money to take place in an orderly fashion. Without escrow services it would be rather difficult to make the transaction. What escrow services do is wait for all issues that were previously agreed upon to be completed. These escrow services provide the peace of mind that’s so important in these situations, benefiting both the buyer and the seller.

During the escrow process you can expect to deal with title insurance. Title insurance seems like an odd insurance because it’s insuring what has already been evaluated, the title. For that reason, title insurance is an odd one, as it’s rarely actually needed. Title insurance is like liability insurance for your lender. It’s required like liability insurance is, but it’s sole design is to protect your lender. So, the lender requires that you get title insurance, which protects them like liability insurance. They make some money of the title insurance through referral fees, while protecting themselves for free. It’s no wonder they make it mandatory, it’s a totally self-serving expense, like liability insurance.

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