Title Insurance vs. Homeowners Insurance: Why Do You Need Both to Protect Your Home?
Title insurance and homeowners insurance feel similar at a glance, but they protect completely different parts of a buyer’s investment. Understanding what each one protects -and why you need both will help buyers feel confident and prepared for closing day.
Title Insurance
- Protects your legal ownership rights.
- Covers title issues tied to the property’s history that weren’t discovered during the title search—things like liens from unpaid taxes or contractor bills, forged signatures in the chain of title, fraud, recording errors, or undisclosed heirs.
- A onetime premium paid at closing that lasts for as long as you own the property.
Homeowners Insurance
- Protects the physical structure and your belongings.
- Covers future events that might happen like fire, theft, storms, or other damage.
- Requires annual premiums to maintain coverage.
Why do they both matter?
Neither policy replaces the other and both policies work together to protect one of the biggest investments you’ll ever make. Remember, homeowners insurance protects the home you live in and title insurance protects your right to live in it so they cover entirely different categories of risk. Both are essential and can have major financial consequences if something goes wrong.
Every real estate transaction is unique, and we’re happy to walk you through yours. Reach out anytime if you’d like clarity on title insurance, homeowners’ insurance, or anything else related to closing.
