There are so many things to consider when buying a home. Finding the right home and financing can be so complicated. You need to make sure that your new home is properly protected by finding the right insurance.
When it comes to insurance for your home, you are going to need two different types. You are going to need homeowner's insurance and title insurance. These are totally different and protect you and your home in different ways. Though you may not understand the difference, it is important that you do (and you carry both)!
What is homeowner's insurance?
Homeowners insurance is used to protect your home, including any structures that are on your property.
What does homeowner's insurance cover?
- Damage or loss to your home and any structures on your property. This can be due to fire, storms, and even vandalism. Damages during burglary may also be covered depending on your policy.
- Any personal property that you keep in your home. It is important that you understand that you may have a limit when it comes to the personal property in your home. If you own expensive art or jewelry, you may want to make sure that you have enough insurance to cover any losses that may occur.
- Loss of use. If you are unable to live in your home due to damage, your insurance may cover some of the expenses that occur when you need to live elsewhere (such as a hotel).
- This protects you if anyone is hurt on your property and decides to sue you. Your homeowner's insurance will cover medical and legal expenses for injuries that occur on your property.
Basically, homeowner's insurance will protect your home, property, and personal property. It also protects you if someone is hurt in your home or property.
What is title insurance?
Title insurance is completely different than homeowner's insurance. It protects the ownership of your property.
Why is Title Insurance important?
Title insurance keeps other people from owning the property that you have purchased. Before you buy a property, your lender will make sure that there are no liens on the property so that you can buy it, without any problems arising.
Once you do own the property, your title insurance will keep others away from it. Unfortunately, real estate scams have been a problem and title insurance is necessary to protect you. Criminals may try to get the title of your property. They may use your information to buy another property, or they may sell your property without you knowing about it. This is when title insurance comes in handy. It will cover any legal expenses that occur due to mortgage and real estate scams, or if anything else would happen.
What can you do about your insurance needs?
Because insurance can be so complicated, it is recommended that you talk to a professional insurance agent. He or she will be able to go over multiple options, discuss what is covered (and what isn't). He or she will also help you find the right policies in your price range. Title insurance is usually purchased through the settlement company when you purchase a home so you can reach out to them for options and questions with your title insurance.
If you are looking at insurance, you may want to make sure that you and your home are properly protected. Don't hesitate to talk to us today. We are local loan officer experts here to make sure that you have all of the insurance that you need. We want to make sure that, in the event that something happens, you aren't going to lose everything! Our goal is to get you the right amount of insurance for the right price.