Estimated reading time: 3 minutes
- Introduction: The Differences Between Title and Homeowners Insurances
- Watch and Learn about the Differences between Title and Homeowners Insurance
- Difference 1: What Each Insurance Protects
- Difference 2: How You Get Each Insurance
- Difference 3: What Each Insurance Covers
- Conclusion: Both insurances are needed!
- For More Information about Title Insurance
Introduction: The Differences Between Title and Homeowners Insurances
Many of our customers ask about the differences between title and homeowners insurances. Luckily, we’re here to help clear up the confusion and demonstrate three key distinctions by giving you three clear reasons why they are different.
Key Points
To start, here’s what we have included in this blog post to show you what the key differences between title and homeowners insurances are.
- They provided protection for different things.
- You get them from different places.
- One covers the past, while the other focuses on the future.
Watch and Learn about the Differences between Title and Homeowners Insurance
Watch our short video to learn about the differences here, too!
Difference 1: What Each Insurance Protects
Firstly, title and homeowners insurances cover completely different things! Keep in mind, though, both are necessary. So, in this first section, let’s discuss what each does for you when you purchase a home.
Title Insurance
Title insurance protects your ownership rights by ensuring that the title to your new home is free and clear. It also makes sure that there are no ownership disputes or hidden claims.
Homeowners Insurance
Homeowners insurance covers damage to your home. It also protects your belongings in the event of a fire, theft, or natural disasters.
Difference 2: How You Get Each Insurance
Secondly, how you obtain title and homeowners insurances differs, as does how you pay for each one. To begin, we’ll take a look at title insurance.
Title Insurance
Title insurance is a one-time purchase when you buy your home. It’s included in your settlement costs and is only a very small part of those fees. We here at Landmark Abstract specialize in title insurance!
Homeowners Insurance
In contrast, homeowners insurance is normally purchased annually through your insurance agent, like the office you get your car insurance from. Those costs depend on the agency and on a variety of other factors.
Difference 3: What Each Insurance Covers
Now, time is the main factor when it comes to the differences between title and homeowners insurances. Again, we will start with title insurance and discuss what it covers.
Title Insurance
Title insurance covers the PAST. It shows that the title to a property is clear of any problems that could come up from previous owners or legal issues. A title searcher and a title examiner scrutinize over property records to ensure the title to the property is free and clear.
Homeowners Insurance
In contrast, homeowners insurance is there for FUTURE needs. It provides protection against possible damages and losses to your property. Basically, it provides security for unforeseen events.
Conclusion: Both insurances are needed!
To sum up, there are differences between title and homeowners insurances, but they are both needed! Homebuyers should have both because they cover different aspects of homeownership and are essential to peace of mind in your home.
Now that you know the differences, and, if you’re ready to settle on a new home, contact us for your next settlement!