How Homeowner’s Insurance and Title Insurance Work

Recently in this space, we discussed private mortgage insurance, a vital consideration for many entering the home loan space. This is just one of multiple insurance types that are commonly associated with homeownership, important potential areas of protection for both the home itself plus your mortgage and other factors.

At Primary Residential Mortgage, we’re happy to explain accompanying insurance options and requirements for any of our home loans and resulting homeownership situations. Two important types to be aware of are homeowner’s insurance and title insurance – here are some basics on each and how they differ.

Homeowner’s Insurance

As the name suggests, homeowner’s insurance is a type used to protect the specific home and any structures that are on the property, including the primary house plus any sheds, attached garages or others. It will generally cover each of the following areas:

• Damage or loss: Whether to your home itself or any other structure on your legal property, homeowner’s insurance will cover damage from a variety of causes. These include elemental or accidental causes like fire or major weather storms, and also often include acts like vandalism or burglary in many cases. This will depend on the precise policy you acquire.
• Loss of use: In addition, if damage to the home has been so significant that it causes you to be temporarily unable to live in it due to major repairs, homeowner’s insurance will generally cover many of the expenses incurred here, including hotel costs.
• Personal property: As long as you have the proper level of insurance, it will also cover personal property inside your home, such as valuable jewelry or artwork.
• Liability: Finally, homeowner’s insurance also covers medical and legal expenses for any injuries that may occur to an outside party on your property.

Title Insurance

Title insurance, on the other hand, protects the home’s title – essentially, your proof of ownership of the home. It blocks everything from lien attempts to real estate scams, the latter involving criminals who may try to acquire the title of your property through identity theft and other methods. If such an issue arises, title insurance will not only protect you, but will also cover legal expenses due to such attempted scams.

If you’re unsure which type of insurance might be best for you, or if going with both is the prudent move, simply speak to our team of trusted loan officers. We’ll explain how each works in greater detail plus connect it to your specific situation and advise you on the proper course of action.

For more on mortgage-related insurance, or to learn about any of our home loan services, speak to the staff at Primary Residential Mortgage today.

*PRMI NMLS 3094. PRMI is an Equal Housing Lender. Some products and services may not be available in all states. Credit and collateral are subject to approval. Terms and conditions apply. Programs, rates, terms, and conditions are subject to change and are subject to borrower(s) qualification. This is not a commitment to lend. Opinions expressed are solely my own and do not express the views of my employer.