What Is The Relationship Between Title Insurance And Homeowner’s Insurance?
Free Insurance Quote Comparison
Secured with SHA-256 Encryption
UPDATED: Sep 15, 2020
It’s all about you. We want to help you make the right legal decisions.
We strive to help you make confident insurance and legal decisions. Finding trusted and reliable insurance quotes and legal advice should be easy. This doesn’t influence our content. Our opinions are our own.
Editorial Guidelines: We are a free online resource for anyone interested in learning more about legal topics and insurance. Our goal is to be an objective, third-party resource for everything legal and insurance related. We update our site regularly, and all content is reviewed by experts.
Title insurance and homeowner’s insurance protect against totally different types of risks.
Homeowner’s insurance covers loss or damage to the home, other structures, and the personal property contents of the home, as well as third-party liability.
Title insurance protects ownership interests in the real property. Title insurance is to guarantee that you have good and marketable title to the property — that your interest in the property is superior to all others. When purchasing a home through proceeds of a loan, lenders require you to obtain title insurance. That way they know that you have clear ownership of the real property and the home.
Before being able to obtain a loan on a home, the title insurance company conducts a search to determine all liens, encumbrances, and other possible defects to the title as it stands in the hands of the seller. Then, when the title insurance coverage is obtained, the Title Company guarantees that the buyer has marketable title to the property after the purchase. Any liens, encumbrances and other defects to the title that occur during your ownership of the property, however, are not covered by this insurance.