What is title insurance? Do I need it?
- Title Insurance is insurance against loss from defects in title to real property and from the invalidity and unenforceability of mortgage liens. It is meant to protect an owner's or lender's financial interest in real property against loss due to title defects, liens or other matters. Most lenders require title insurance in order to receive financing. It is important to have title insurance to protect yourself against any defects on the title that may not come up in the title report.
Do I need home owner's insurance?
- A standard homeowners policy protects against fire, lightning, wind, storms, hail, explosions, riots, aircraft wrecks, vehicle crashes, smoke, vandalism, theft, breaking glass, falling objects, weight of snow or sleet, collapsing buildings, freezing of plumbing fixtures, electrical damage and water damage from plumbing, heating or air conditioning systems. Such policies are "all-risk" policies, which cover everything except earthquakes, floods, war and nuclear accidents. A basic policy can be expanded to include additional coverage, such as for floods and earthquuakes and even workers' compensation for servants or contractors. Insurance experts recommend that homeowners obtain insurance equal to the full replacement value of the home. Without coverage, you are liable to any damage that occurs to your home and are responsible for any costs of repair.