Title insurance and homeowner’s insurance have different functions and benefits. During this week’s episode, Angela Wyckoff compares and contrasts the two, and explains what each type protects against.
What is the difference between title insurance and homeowner’s insurance? The short answer is that the homeowner’s insurance protects you from what might happen, while title insurance protects you from things that may have already happened but are unknown or hidden. Both can have a significant financial impact on the homeowners, so let’s explore them in more depth. Homeowner’s insurance may cover things like damage to contents of your home, theft of personal property, living expenses if your home is inhabitable, damage to your home caused by fire, hail, windstorm or vandalism, personal liability for bodily injury or accidents to guests in your home, and structural damage to your home or detached structures. Title insurance covers things like a defect in title caused by forgery, fraud, undue influence, duress, or incompetency, a defect in title caused by undisclosed prior mortgage lines, improper execution of documents, documents not being filed properly, recorded, or indexed by public records. Please feel free to reach out any time for clarity on these topics or any other mortgage related needs.
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