When you buy a house there are so many details that need to be understood and decisions that need to be made. It’s an overwhelming process that can get confusing very quickly, if you don’t know what to expect.
One of the area of confusion for many homeowners is the area of insurance. When purchasing a home you’ll hear about homeowners insurance as well as title insurance, and it can be difficult to differentiate between the two.
What is the difference? Do you need both? Let’s look at what exactly the two are, how they are different, and why you need both.
Homeowners Insurance
Homeowners insurance protects you in the event something happens to your home in a physical sense. For example, homeowners insurance protects you should your home be damaged by a falling tree or a fire.
Homeowners insurance also protects you from liability should someone be injured on your property. If someone falls, for example, while on your property, homeowners insurance can help protect you from being held liable for their medical expenses.
Homeowners insurance is an important part of owning a home, as accidents do happen and you could wind up in a lot of financial trouble should you not have it.
Title Insurance
Title insurance helps ensure that your home’s title is free and clear of any debts or defects in the title. In short, it protects you as the owner of the property from someone else making a claim that it is theirs.
While they may have a valid claim, title insurance will cover any costs associated with the legal ramifications of the property not having a clean title. For example, if someone comes forward with a claim of ownership on your property due to a fault in the title, the title insurance will cover your expenses for any legal filings and expenses.
Why You Need Both
Homeowners insurance and title insurance are two very different things, but both can save you money and headaches in the long run, should something go wrong with your property. Homeowners insurance is essential as it protects you from the unforeseen and unpredictable.
Homeowners can also give you peace of mind when people visit your home, knowing that an accident can’t end up costing you money because of someone else’s medical bills.
Title insurance is also important because it can protect you should there be a problem with your home’s title and ownership. You’d never expect there to be a problem with your title, but you’d be surprised how often it happens.
Freedom Insurance is Here to Help
If you are in the market for a new home, or you are looking for insurance for your property, contact us at Freedom Insurance Agency to discuss your situation. We can help you navigate the best homeowners policy and title policy for your property. We are happy to help, and we look forward to working with you!
