Title insurance and homeowners’ insurance are two important types of insurance that are related to your home but serve different purposes. In this blog post, we will take a closer look at the differences between these two types of insurance, as well as their respective benefits.

Title Insurance: Title insurance is a type of insurance policy that protects the homeowner against any potential losses or damages that may result from issues with the property’s title. This type of insurance provides coverage in the event of disputes over the ownership of the property, liens, or encumbrances that were not disclosed at the time of purchase.

For example, if there is a dispute over the ownership of the property, title insurance will provide financial protection for the homeowner. Similarly, if a lien or encumbrance is discovered on the property after the sale, title insurance will provide coverage for the cost of resolving the issue.

Homeowners Insurance: Homeowners insurance, on the other hand, is a type of insurance policy that provides protection for the physical structure of the home, as well as the contents of the home, from various types of perils. This type of insurance provides coverage for things like fire, theft, and natural disasters.

For example, if a fire breaks out in your home and causes damage, homeowners’ insurance will provide coverage for the cost of repairing or rebuilding the damaged portion of the home. Similarly, if your home is damaged due to a natural disaster, such as a hurricane or earthquake, homeowners’ insurance will provide coverage for the cost of repairs.

Key Take Aways: Title insurance and homeowners’ insurance are two important types of insurance that serve different purposes. Title insurance provides protection for the homeowner against potential losses or damages that may result from issues with the property’s title, while homeowners’ insurance provides protection for the physical structure of the home and its contents from various types of perils. It is important to understand the differences between these two types of insurance, and to choose the right type of insurance to meet your needs. By doing so, you can ensure that you have the right level of protection with a cost you can afford in place for your home and your assets.

Contact Cosmopolitan Title today and enjoy a pleasant, positive closing experience without unexpected surprises!

Inquiries:

Phone: 1.800.688.4039

Email: contactus@brbcosmo.com