Title Insurance Concerns

[Richard S. Shehan]

I am selling a house to a buyer who will pay in cash,  the buyer's agent is using Colorado Title and Closing to manage the documents and they sent me a document showing the title insurance company they have "selected" for me and the total cost for the title insurance is ~$1,900 and it includes things like owners extended coverage ($50) mechanics lien ($50) and copying fee ($50) . The sale price is $998,900.  This home was purchased by me only 2 yrs back and a title search was conducted, my property taxes are current and there are no liens.  I found the amount of the insurance to be excessive and question the need for the insurance at all but the buyer wants it I also find it ironic the in Colorado it ie accepted that the seller pays for this insurance, I understand it can be negotiated. Also in check DORA who regulates insurance agencies they indicate the real agent involved is responsible for recommending 3 title insurance companies - this was never done.  I told the title insurance company to justify their cost and I will be shopping for a lower price.

I do not know who are the participants of this forum but my perspective of title insurance - esp involving cash transactions is prohibitively costly and just drives up the transaction cost. Furthermore in researching the subject and talking to several realtors I found problems in residential transaction involving titles are extremely rare and that a number of states have capped the amount that can be charged to protect consumers.

So should I be upset about the cost of this insurance which I personally see little value in,  thanks for any comments.