Whether you are in the market to buy your first home or just need to know about the main insurance options that are available when it comes to homeownership, we can help. We’ve compiled a quick summary of the key differences between homeowners insurance and title insurance and why you should consider having both.
What is title insurance?
Without any coverage to protect you when you go through the process of buying a home, there can be financial obligations that pop up and keep you bound to them even if you weren’t aware of them. Unfortunately, sometimes sellers can leave out disclosing debts or other financial dilemmas that are tied to a property in order to complete their sale.
However, after the deal is done even, the buyer can be left legally obligated to pay for things that they did not have any knowledge of when they entered in the agreement to buy the property. A title insurance policy can prevent a buyer from becoming a victim of fraud or other scams that would otherwise leave them vulnerable. Title insurance lasts for the duration of home ownership and only needs a one time payment.
What is homeowners insurance?
A homeowners policy is a type of insurance that protects your home by covering the cost of repairs or replacement of items when there is any type of physical damage or theft. It is an important part of homeownership to ensure that you can maintain your property’s condition should costly repairs ever be needed or valuable items be stolen.A homeowners insurance policy lasts as long as the policy is renewed and requires an ongoing payment plan.
What are the key differences between title insurance and homeowners insurance?
Homeowners insurance can help protect against:
- The cost to repair or replace the physical structure of the home due to damage or weather
- If certain valuable personal belongings are stolen from inside the home such as jewelry
- If a lawsuit arises due to someone who is injured on the property
Title insurance can help protect against:
- Any defects with the title such as liens against the home
- Errors in the public record
- Issues coming from boundary disputes
- Fraudulent activity with the sale of the home
- Forgeries and inconsistencies with the seller