The Search - Title and Insurance

Securing the Proper Insurance

The Home Buyers, Inc. can guide you through title search, title insurance, homeowners insurance, flood insurance, warranties and the related requirements when buying a home.

To make sure your new home has all the required insurance by the time you close, start lining it up as soon as you’ve signed the purchase agreement.

Title Search

The title is the legal document that proves ownership of a property. A title search ensures that the seller holds the title. Title insurance protects you if someone else proves ownership after you close. Both are required when buying a home.

Before buying a home you a title search service will examine all public records to ensure that there are no liens or other claims on the home. By looking at mortgages, deeds, trusts, wills, liens, judgments and other documents from the past 30 years, the title search ensures that no one can claim ownership.

Title Insurance

Title insurance protects owners just in case the title search missed something. As a home buyer, you’ll pay a one-time fee that—if someone proves ownership of your new home—compensates you for your down payment plus your mortgage.

Homeowners Insurance

Your lender requires homeowners insurance until you pay off the mortgage. The typical policy compensates for fire, theft and liability.

But, since homeowners insurance policies protect your interests too, you should consider it even if you are not financing your purchase. Many policies also cover personal property and may provide for temporary lodging when you must replace your home.

Many home buyers start shopping for homeowners insurance by contacting the agent who insures their car. An EBA like The Home Buyers, Inc. can advise you on finding the best coverage.

Other Insurance Options

Two other common types of home-related insurance include flood insurance and home warranties.

Flood insurance, issued by the federal government, may be required if your home is at risk. An experienced EBA such as The Home Buyers, Inc. will alert you if you need flood insurance.

Home warranties can give home buyers of new construction an extra degree of confidence. The typical home warranty might cover workmanship, structural defects, plumbing, wiring, and other mechanical problems. While you or the seller also can buy a home warranty for an existing home, it is usually limited in scope and duration.