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by hnburnsy
726 days ago
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It is a scam for two reasons... 1) The premium to risk cost is astronomical compared to other forms of insurance. 2) The owner's policy really only protects your equity (like if you put down 20%) but costs more or the same as the lender's policy (the other 80%) Payout rates by insurance type: title insurance - 1-2% car insurance - 70-80% (lately close to 100%) life insurance - 96-98% homeowners - 60-70% |
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1) The premium to risk cost is astronomical compared to other forms of insurance.
2) The owner's policy really only protects your equity (like if you put down 20%) but costs more or the same as the lender's policy (the other 80%)
3) 80% of the costs are paid to the agent as a commission