Title Insurance in Clifton and Other Types of Policies You May Hear About When Buying a House

Clearing up the Confusion on Insurance Policies and Title Insurance

Things can get a bit messy when trying to understand the process of home buying but it doesn't have to be frustrating. Advanced Title Company always strives to make the process easier for you. Today, we want to clear up a few doubts you may have in regards to the different type of insurance policies you might hear about when purchasing a house.

Insurance Policies You Need to Know About When Purchasing a House

• Title insurance. This type of insurance is an absolute must even before you close the deal on a home. Mortgage companies or lenders will require that you buy lender's title insurance, a one-time premium that protects the amount they are lending you. Obtaining title insurance is a vital step in the home-buying process because it ensures that the actual sale is legal and that the property is sold in good standing and not as part of a fraudulent transaction. This means that before a title insurance policy is issued, a title search is run and any problems with the ownership of the property are addressed. Once the records prove that the title is clear, the property can then be covered by a title insurance policy. Read our previous post to learn more about what you should know about title insurance. You can also contact us directly with any doubts and find out how we can help secure and facilitate the home buying process.
• Owner's title insurance. Since the lender's title insurance will only cover the mortgage company for their share of the investment, it is also important to protect your money as a buyer.  It is always a good idea to purchase both lender's and owner's title insurance together as this can reduce the cost. Owner's title insurance is one of the most important policies you can get because it can truly save your investment from previous events that may have gone inadvertently at the moment you purchased the property but that can affect you now as the new owner. For more details on what title insurance covers and why you need it, visit our post here.
• Home insurance. There are different types of home insurance which are usually divided into two. Buildings and contents are two of the most common types. As the names states, home insurance for buildings covers the actual building and the structure while a contents policy will cover the things inside your home. It's important to point out that there are also policies that cover both. What is covered may vary from one policy to another, but in general, these policies protect against hazardous conditions, such as hail or fire and other type of events. However, it is important to read carefully and investigate exactly what the policy will and won't cover. Some events, such as floods and earthquakes, are not covered by all policies. There are of course more broad policies that may cover a more extensive list of possible accidents and occurrences, such as vandalism or damage from falling aircraft. The area where your property is located will determine the likelihood of these types of events and will help you decide what you need to cover your house against. Also, the most common policies only take care of a certain amount of the damage. This means that in the event of an incident it may not cover certain personal property, liability, or medical expenses. So, be sure to take this into consideration and ask all your questions before getting a policy. It is recommended that you shop around and compare what you can get for the best price. Lastly, make sure that the policy you get  fits your needs.
• Other. Other types of policies, such as life insurance, may be mentioned when you are going to purchase a home. In reality, these are not truly mandatory. They do offer a good option for securing the payment of your mortgage in case something happens to you. However, these options can be looked into after you have bought your home, settled in, and have taken care of the vital paper work. Don't feel rushed to purchase every type of insurance possible.

Title Insurance in Clifton

All you really need to take care of during the purchasing process is title insurance and any other mandatory policy that the mortgage company might demand. If you would like more information and expert advice on the subject, be sure to contact the title insurance professionals at Advanced Title Company at (970) 255-7677.