Anyone Purchase Closing Protection Coverage in Ohio?

[Sheri Ulm]

I am closing on a land contract purchase in a few days and I have the option of purchasing Closing Protection Coverage which covers

1) Theft, misappropriation, fraud or any other failure to properly disburse settlement, closing or escrow funds; and

2) Failure to comply with any applicable written closing instructions, when agreed to by the licensed agent.

This is in addition to my normal Title Coverage.

Has anyone purchased this coverage? Why or why not? I'm thinking it might not be a bad idea given its a land contract purchase but don't want to be wasting money on something that isn't necessary. Any thoughts?

[Susan M.]

Our realtor told us that this coverage is fairly new and was done because there were some dishonest title agencies taking money from buyers but not paying off the note (or seller) with the funds, therefore the buyer thought the property was theirs but it wasn't and they found out the hard way after they never got the deed and the title company was long gone and out of business.  

We were told that if you're working with a reputable title agency that this is wasted coverage and money.