Found 3 blog entries tagged as insurance.

Real Estate Word of the Day: Title Insurance

Title insurance is a specialized form of indemnity insurance designed to protect property owners and lenders from potential losses arising from defects in the title to a property. Unlike other insurance types, which protect against future events, title insurance protects against claims for past occurrences. This includes any discrepancies or issues with the property's title that may not have been discovered during the initial title search.

When you purchase a property, a title company conducts a thorough search of public records to uncover any potential issues with the title. This search aims to ensure that the seller has a valid title to transfer and that there are no hidden liens, encumbrances, or other…

276 Views, 0 Comments

Read Full Post

What is Private Mortgage Insurance?

Private Mortgage Insurance, or PMI, is an insurance policy that pays out to a lender in case a homeowner defaults on a mortgage.

The homeowner pays a monthly or one-time premium on their mortgage payments, but the lender is the one getting the protection.

PMI is usually requested for and arranged by the lender, and is offered by private insurance companies. Lenders usually request PMI if the homeowner wishes to put less than a 20% downpayment on the house, and usually require the policy to be in place until there is at least a 20% Loan-To-Value, or LTV ratio on the house. The LTV ratio is calculated simply by taking the value of a loan on a house and dividing it by the value of the house. For example, if a…

1140 Views, 0 Comments

Read Full Post

You are paying for house insurance, assuming your property is covered for any natural disaster that can possibly occur. However, not all homeowners are aware that home insurance policies don't necessarily cover damage related to a flood, as the risks are too great. As a result, homeowners must purchase flood insurance through a private company.

What Is Flood Insurance?

Most insurance policies cover some form of water damage, ranging from leaking faucets to bursting plumbing pipes. Fun fact you may not realize is - some policies don't cover water damage because of flooding of rivers or backed up sewers that pump into your home. Standard flood insurance policies cover "direct physical damage" to a property resulting from floods.

A separate policies…

2223 Views, 0 Comments

Read Full Post