The different types of insuranceWhat kind of insurance do I need?
Obtaining the appropriate insurance for your home can bring peace of mind.  Some insurance decisions must be made prior to the loan closing.  Certain types of insurance are often required by the lender and will be included in the closing costs; other insurance is optional to the buyer.  Typically, property related insurance payments are managed through the escrow account.  There are three main types of insurance plans to consider when you purchase a home. 

Title insurance provides a protection from uncovered claims against the title of the property you are acquiring. Private mortgage insurance (PMI) protects the lender against default. Homeowners insurance packages several types of coverage aimed to protect you from damage or loss to your home.

 

Title Insurance
Title insurance provides protection from financial loss due to claims made against the title of the property including legal defense of the title against those claims.  This insurance is usually provided after a title search is done to uncover any interests or liens on the property, in order to clear the title of any claims against it.  This type of insurance provides protection against past defects, not future faults. The last thing you want is to have purchased a home and then find out their is an existing lien from a third party. Read the rest of this entry »

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