That isn’t how insurance works. There isn’t a big lockbox in the basement, if there was then no insurance company would ever go broke and there wouldn’t be government backstops for those which do go under. More the the point, if your title proves defective and you lose your property interest, you don’t want your $100 premium back, you want the value of the property . Where does that money come from? Why - that giant lockbox in the basement, that’s where. I.E; everybody else’s premiums.
Blockquote
“ When a company enters a period of financial difficulty and is unable to meet its obligations, the insurance commissioner in the company’s home state initiates a process—dictated by the laws of the state—whereby efforts are made to help the company regain its financial footing. This period is known as rehabilitation.
If it is determined that the company cannot be rehabilitated, the company is declared insolvent, and the commissioner will ask the state court to order the liquidation of the company.”
Blockquote
https://www.nolhga.com/policyholderinfo/main.cfm/location/insolvencyprocess
Sort of depends on whether that insurance company is still in business; if not you rely on a government pool which, in every state, is capped (different amounts which vary by state.)
To be clear, title insurance is different from other insurance which requires regular payments, Title insurance is a “pay once” and not again until the property changes hands product.
Claims are often unearthed years, sometimes decades after the transaction. % Adverse possession often takes 7-10 years to happen (that’s when someone encroaches on your property but you don’t know or take remedy for it). % Government may have granted an easement to a developer or a utility or anyone, really, which in some way devalues your property rights. % State government may have made changes in zoning laws which affect your property, but which are not reflected in your current deed. They are not going to send a little note to every single property owner in the state. % And there are lots of others.