When it comes to a mortgage loan situation and related homeownership, there are several forms of insurance you may have to think about. Some of these, such as private mortgage insurance, are meant to protect a mortgage lender, but others – including both homeowner’s insurance and title insurance – are meant to protect the buyer and their property.
At Primary Residential Mortgage, our loan consultants will be happy to explain insurance requirements or possible outlets for any of our home loan and homebuying situations. For those entering homeownership for the first time, let’s take a few minutes here and go over the differences between homeowner’s insurance and title insurance, the two types that most benefit you as a buyer.
When you purchase a home, homeowner’s insurance is taken out to protect both the physical structure itself, any additional structures on the property, and any personal property inside the structures. It also helps protect you in case someone is hurt on your property or in your home. The full range of areas covered by homeowner’s insurance include:
Title insurance, on the other hand, is to protect the ownership of your property and its title, rather than the actual physical property itself. Essentially, title insurance keeps potential scammers or other unscrupulous folks from attempting to forge or steal the title of your property, an effort that’s often made in coordination with attempted identity theft. Scammers may try to use your information to buy another property, sell your current property or a number of other hoodwinks.
Luckily, title insurance protects you here. It makes these attempts far harder to even get off the ground, plus covers legal expenses in the rare case where someone does attempt a mortgage or real estate scam. It’s also helpful in cases of liens on a given property.
For more on title insurance and homeowner’s insurance, or to learn about any of our mortgage loans or rates, speak to the staff at Primary Residential Mortgage in Fort Myers 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.