Title insurance is not a scam. You are required to have it if you need a mortgage on your home. Like all insurance it is rarely used, but the small one time fee you pay protects you for the full life of the mortgage.

Im in the title industry.
Title insurance is the most profitable business in the insurance industry, IF done correctly. Risk for the title insurance company is reduced if they do proper and thorough records check on the property.
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Vanessa,
I've had two clients use their title insurance out of 100 or so buyers who have purchased it. I think the two that used it wouldn't call it a scam but the others may question if it's worthwhile. Any insurance you buy you buy hoping to never use. I wouldn't buy a home without it.
Michael Doyle Realtor

Title insurance is definitely a profitable proposition but it can come in handy when there's problems with title work that are not discovered until later. I don't remember Money's article well enough but I personally don't think it is a scam and when you make a purchase, your lender will require you purchase a "lender's policy" of title insurance to cover their risk, and so often the cost of the "owner's policy" is only a few hundred dollars more.

As Title Insurance is an insurance product and thus real estate agents cannot give you specific advise on whether to purchase it or not as we are not licensed to market such products.

I haven't had a claim on my homeowner's insurance in the 6+ years I've had it and haven't had a claim for auto insurance in probably 8+ years so I've been pretty profitable for them too...

Vanessa......when you look at what you spend on a residence, something you love dearly and work hard for, I would NEVER recommend that you don't spend the little it takes to purchase it. Chances are you will never need, but if you do, it will pay back in spades, monetarly and in avoided heartache. It's like any insurance.

Thanks, Todd Norsted