What is the difference between title insurance and homeowners insurance?

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Asked June 28, 2011

1 Answer


Title Insurance:

  • Protects homebuyers and mortgage lenders from financial losses due to title defects or ownership claims.
  • Covers the value of the property and any liens or encumbrances that may affect the property.
  • Typically a one-time cost paid at the time of closing.
  • Covers title defects that occurred before the policy was issued.
Homeowners Insurance:
  • Protects homeowners from financial losses due to damage to the property, theft, or liability claims.
  • Covers the structure of the home, personal property, and liability claims.
  • Typically paid in monthly or annual premiums.
  • Covers damages or losses that occur while the policy is in effect.
While both types of insurance are important for protecting homeowners and homebuyers, they cover different types of risks and are designed to provide different types of coverage. It's important for homeowners and homebuyers to understand the differences between these two types of insurance and to ensure that they have the appropriate coverage for their individual needs.

Answered June 28, 2011 by Anonymous

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