Is title insurance a waste of money in Australia is debated, but for most home buyers it is low cost peace of mind, not a waste, though some conveyancers say it is low value. Title insurance costs $300 to $1,000 one-off for lifetime cover, covering unknown risks after settlement like fraud, forgery, illegal building works, unapproved structures, boundary encroachments, outstanding rates and planning issues not discovered in searches. Claim rate is low, about 2% to 5%, because conveyancing searches already cover many risks, so critics argue it is waste because you pay for risk that rarely occurs and has many exclusions like known defects, pest and wear. However, when claim occurs, it can save $20,000 to $100,000, for example if previous owner built deck or garage without council approval and council orders demolition, title insurance covers loss and legal costs, which conveyancing searches may miss if council records incomplete. For older properties with extensions, rural properties with boundary issues, or properties where owner-builder work done, it is not waste. For brand new apartments with full building approvals and strata searches, it may be less necessary. Unlike US where title insurance costs $2,000 to $5,000, in Australia it is cheap one-off $500 for $750K house. So it is not waste for $500 lifetime cover for first home buyers and older homes, but may be unnecessary for new builds with full warranties. Many solicitors recommend it for peace of mind.
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