Do you need title theft insurance?

Home Title Lock is different from traditional owner's insurance. It is a monthly subscription service that promises to alert you to anything affecting your home's title, which could indicate mortgage fraud.

Attorney Tom Olsen: More and more people are calling us about title theft.

Attorney Chris Merrill: They are.

Attorney Tom Olsen: Why? Because they're advertising it so heavily on TV.

Attorney Chris Merrill: Exactly.

Attorney Tom Olsen: People think they see this and go, "Oh my God, How have I ever lived without title theft insurance." Well, folks, guess what? You don't need it. All right? They're trying to sell you something, that's why they make it look like you have to have it, okay? Here's what we're saying-- By the way, Clark Howard, he's a consumer warrior, he agrees with me. It's not just me.

Attorney Chris Merrill: We know we highly respect Clark Howard and what he says.

Attorney Tom Olsen: We do. Folks, most people all they own is their home. If somebody's going to try and steal the title to your home and sell it out from under you, guess what? There's going to be appraisers, there's going to be surveyors, there's going to be inspectors all coming around your home and you're going to know that something is up.

Attorney Chris Merrill: Exactly.

Attorney Tom Olsen: All right. With that said, I would say this. There is one situation where maybe you would want to have title theft insurance and that is this, if you own a vacant lot and you're not going by that vacant lot on a regular basis, like it's in another state, like North Carolina, you only go up there once a year, well maybe you want to have title theft insurance because, yes, somebody could be putting up survey markers and driving by it and doing tests on it, and you wouldn't even know about it. Well, okay, I could understand on a vacant lot that's away from where you live, you're not getting by there, that might be a reason for title theft insurance.

Attorney Chris Merrill: Correct. Tom, however though, just to let the listeners know out there, even on vacant land, now many of the title companies, including our title company, the minute that there is a contract for sale and purchase for vacant land, the title company now is requiring additional measures criteria security to make sure that this is a valid legal transfer.

Attorney Tom Olsen: Excellent point, Chrissy. What's happening out there is that the title companies are recognizing that when people are doing title theft, they're thieving vacant lots, because people don't see what's going on.

Attorney Chris Merrill: Correct.

Attorney Tom Olsen: Now the title companies have gotten to be more prudent about doing some research and make sure there's nothing sketchy going on there.

Attorney Chris Merrill: Exactly. To your point, you may want to consider it if you have vacant land in a place that you don't often look at. However, just be aware that they're also upgraded with the title companies doing their part.

Attorney Tom Olsen: Thank you, Chrissy. Hey, folks. My name is Tom Olsen. The name of the show is Olsen on Law. You're listening to WDBO. We're going to take a break. We'll be back in just a few minutes.