The industry, made up of mostly small businesses, charges a fair rate. Costs are already falling.

Steve Adkins’s criticism of the title insurance industry is off base (“Title-Insurance Reform Is Waiting for a Good Lawsuit,” Letters, April 24).

Contrary to Mr. Adkins’s claims, the cost of coverage has decreased by 7.8% nationally since 2004, according to the American Land Title Association. Title companies profit only $0.08 for every dollar they receive, the association notes.

These businesses invest significant resources upfront to achieve a clean title. They conduct extensive public-record searches prior to closing. The one-time premium covers the cost of discovering, identifying and correcting past title defects, as well as insuring against any unknown risks not found in the public records, such as fraud or forgery.

State departments of insurance oversee industry practices and rates to ensure they are justified by actuarially supported data.

The title industry has a proven record of helping Americans secure the dream of homeownership, and 90% of the industry is comprised of hardworking small businesses in communities across the country.

These companies protect homeowners. There’s no reason to reform a system that isn’t broken.

Appeared in the May 8, 2024, Wall Street Journal print edition as 'No Good Reason to Reform Title Insurance'.