Is Title Insurance the Same as Homeowners Insurance?May, 16 2018
Homeowners insurance is a necessary, integral part of purchasing and owning a home.
While title insurance might sound like a similar idea at face value, the two types of coverage are actually very different, and this difference is vital in understanding how you can protect yourself and your home.
If you’re ready to buy a home, especially if this is your first property purchase, it’s important for you to understand, compare, and contrast these two types of insurances. Coverage from both is how you’re going to successfully own your property and keep it running for years to come. Read on for more information.
What is Homeowners Insurance?
When you own a home, disasters and mishaps are bound to happen. It is almost impossible that you will own a home for more than a few years without needing your homeowners insurance coverage.
Floods, lightning strikes, wind damage, and wood rot are all covered by homeowners insurance, and are the most common disasters that may strike your home. However, homeowners insurance can also protect against robbery, personal liability, loss of use, and even medical payment for a third party. With so many types of coverage, homeowners insurance has a wide range of uses that are all necessary when it comes to owning a home.
What is Title Insurance?
Title insurance is a little different and requires more understanding of how a property is owned. When you purchase a home, you’re also purchasing its past.
Deeds, tax records, mortgage payments, land restrictions…these are all important factors that make up the history of your newly purchased property. You are right in assuming that past-due mortgage payments are not any fault of your own, and the responsibility to pay them should fall to the previous owner. However, without title insurance, it’s possible that you will be the one suffering the consequences.
Title insurance will ensure that you are protected from defects that might not be found in an initial home inspection, and you will be covered for all legal fees. Just make sure that you’re working with a trusted title company.
What’s the Difference?
As you can see, the two types of insurances are very different.
Homeowners insurance protects for the future–what might happen, and what will inevitably happen over the course of your ownership.
Title insurance covers the past–things you cannot control, that would become your problem. Each home has a past and future that must be considered before it is purchased. When looking for your perfect home, you should always take these insurance types into account.
Still confused? Don’t worry. Armour Settlement Services is your trusted title company.
We’re experts in the field of title insurance, and are a title company dedicated to ensuring you are protected from the past. With title insurance, you won’t have to worry about any legal costs or losses. Armour Settlement Services can help you understand your home’s past, and with this knowledge, you can move forward with a better understanding of how you should be viewing homeowners insurance. Get a free quote from us today!
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