A home purchase is likely the largest single acquisition you will ever make. Protecting that purchase means you will need home and personal property insurance coverage. Standard Homeowner’s insurance shelters you against most risks to property such as fire, theft, or wind damage. Flood insurance protects against losses due to rising water. Title insurance is a unique safeguard against hidden title hazards that may threaten your home investment.
 

Title Insurance Is Just As Important As Any Other Type Of Insurance.

A home purchase means you own the title to the property and the legal right to occupy and use the space, not actual ownership of physical and or structures. Due to limitations of a title, others can make claims and rights may be limited. Title insurance protects against a variety of potential title hazards. Other types of insurance charge an annual premium to protect your home focus from potential future events. Title insurance is a one-time premium purchase that safeguards against loss from pre-existing risks and faults within the title.
 

Types of Title Insurance & Benefits

The two primary types of title insurance are (1) Lender or Mortgagee Protection and (2) Owner’s Coverage. Mortgagee title insurance provides security to lenders for a real estate investment. Fire insurance and related coverages serve the same purpose for investors. Lenders are more inclined to provide mortgage money in areas outside their service area (where market knowledge may be limited) when buyers have title insurance. As long as a policyholder – or beneficiaries – have an interest in the insured property (and sometimes even after property is sold), owner’s title insurance is valid. State law and local systems may require an additional premium for an owner’s policy, or a simultaneous issue charge (typically a lesser amount) for separate lender coverage. Lender or owner’s policy settlement costs may also split with the seller.