Title insurance is a type of liability insurance most commonly found in the United States and Canada. It protects against economic damage caused by a defect in title to your real estate and the invalidism or nonbinding of mortgage loans. As a homeowner, title insurance protects your property ownership. On the other hand, home insurance is a type of property insurance that protects you from financial loss due to natural disasters, theft, or different types of covered disasters. Most home loan lenders will require proof of home insurance that covers the total value or fair price of the home before financing anything.
Title insurance has three policies: owner’s policy, lender’s policy, and construction loan policy. They all cover different liabilities for the various participants in a real estate transaction. It is sometimes called a loan policy because it is only issued to home loan lenders.
An owner’s policy covers:
A lender’s policy works to protect the lender from possible losses if the seller cannot legally transfer title rights. The lender is protected up to the amount of the loan.
Many states have separate policies for construction loans. Acquiring title insurance for construction loans involves a "Date Down" endorsement, which acknowledges that the property's insurance cover has increased due to construction funds invested in the real estate.
There are several types of homeowners' insurance in the United States that have become industry standards. They are designated HO-1 through HO-8 and offer varying levels of protection depending on the homeowner's needs and the type of property receiving the cover. There are three types of coverage; actual cash value, replacement cost, and extended placement cost. The policy covers four kinds of incidents: interior damage, exterior costs, damage to personal belongings, and injuries experienced while on the property.
It covers the costs of damages due to any unfortunate event. Home insurance can be claimed for damage due to the following causes:
When purchasing title insurance, a closing agent initiates the process upon completion of the home purchase agreement. It is a one-time fee that covers two components: a premium charge and service fees. The premium is paid once at the end of the sale. The cost of an owner’s policy is based on the purchase price of the home, while that of the lender is based on the loan amount. The premium on an owner’s policy ranges between $500 and $3,500, depending on your state and insurer.
Several factors influence the cost of a homeowner’s policy, such as your state; the age and method of construction of your home; the average distance from the nearest fire station; your credit score; the insurance provider, etc. In the US, the average cost is $1,312 to $250,000 per year. However, the amount of premiums that you have to pay might be higher or lower than the listed average costs due to the variables mentioned above.
A homeowner policy helps you cover the financial cost of repairing damage to your home. Other benefits include the following:
Owner's title insurance is optional, but the lender's title insurance is required. If a claim arises after purchase, an owner's policy can protect you from losing your equity and your right to live in the residence. Even if you purchase a new home, defects may exist due to previous owners and the building contractor failing to pay all of its contract workers.
Title insurance protects the homeowner for the duration of their property ownership. If unpaid property taxes, outstanding liens, or fines for code violations appear after the property has been purchased, the uninsured homeowner will bear the entire financial burden. However, if you cannot cover these unexpected costs, you may be held liable for far more than you bargained for.
Now comes the million-dollar question. For liability reasons, the answer is yes. These insurance policies protect you differently and equally for investments made in your real estate. A title policy will only require one premium and offer a cover protecting your property ownership. A home insurance policy has annual premiums and protects you from damages such as theft, vandalism, and natural calamities.
Before you settle on an insurance policy from the service provider, do your due diligence and get quotes from different companies. At first, it might sound like a lot of expenses go into insuring yourself, but later on, you’ll be glad you did it. Protecting yourself and your investments from future unforeseeable and expensive costs relies on having insurance cover. Getting both a title and home insurance cover is a smart way of covering both your flanks. Contact us so we can help you narrow down your choices.
Homeownership is one of the best ways to build long-term wealth. Whether you're about to become a homeowner for the first time or you've purchased real estate many times before, you'll want your move to go smoothly. These moving tips are part of any home-buying advice to keep in mind as you prepare to relocate.
Prepare a checklist as you plan your move. This should include specifics such as home essentials, which pieces of furniture to keep and which ones to sell or put in storage, where each item goes, and what to buy for the new house. Set the date and time of your move. Calculate how much time you'll need to pack and move everything. Trying to cram everything into the moving truck at the last minute may be stressful, and you run the risk of forgetting anything vital.
A major relocation needs professional movers. Expert movers know how to make sure your items are transported easily, safely, and arrive at your intended destination intact. Get quotes from several movers and choose the one you like best. Speak with them about the schedule of your move, if you need a truck or trailer, and the list of items to be transported. Remember that it might be harder to book movers during certain times, such as the summer months. Allow more time if you're going to move during this time.
As a home buyer, chances are you've spent time thinking about the new community you’ll be living in. Now is the time to research it even further. Look for amenities close to your area, such as a library, hospital, coffee place, gym, pet shop, and shopping and community centers. If you have some time, walk the streets in the area before you arrive. Do a test run for your new commute to find out the best way to get to work.
It's imperative to have a walk-through of the entire house no more than a day or two before you're going to move. Make sure all is in order before you move in. It would be best if you also had your utilities set up and running on the day you move in. Find out what utilities serve your new community. Look for any problems with the house. Document any such issues and make sure they are fully corrected before your planned move.
Moving to a new location is a chance to start a brand-new life. That's particularly true for children who need special care during the transition and a chance to explore their new home with you. Make sure to value their input and consider their special needs to help them adjust to their new lifestyle. One way to do this is to involve them at every stage of the move, including planning, packing, and unpacking their belongings. Using a game-like organizational system like Moving Game Plans™ gives kids a fun way to tackle “grown-up” tasks and potentially “beat” other family members at key tasks along the way. Streamlining tasks and making the move fun are the keys to having the whole family smiling all the way through the move.
Security is crucial no matter where you live. Once you've moved, it's time to get those locks changed. Make sure the front door and all other doors, such as the door in the backyard, have brand new locks once you're residing there. Ensure the porch lights are working to protect your home during the evening hours. It’s necessary to install a security system around your property.
When you move, you're going to change your address. You want to let everyone know about it. Inform your family and friends about your new mailing address. You will also need to let all the companies you do business with know that you have a new address for your regular correspondence and bills. The same is true of your employer. Find out how to make any changes to your paycheck. Be extra careful with whom you are sharing your contact information.
Meeting new people is one of the greatest joys of moving. Knock on your neighbor's doors and let them know you're about to be part of their community. Introduce yourself and all your family members to everyone in the immediate area. Consider bringing a small gift with you as you speak with the neighbors. Baked goods or a bottle of wine are good choices. Your neighbors are pleased to answer any questions you might have about the area. They're also delighted to let you know about their favorite places to eat and fun things you can do on your leisure time.
Take a deep breath and think about your daily activities now that you’re in the new place. Make a to-do list. Routines help you get things done, such as food and grocery shopping every Thursday, workout session, kids’ sport activities, and even dinner dates. If you like to spend your Sunday mornings with a cup of coffee and a pastry, take a stroll in your new community and see what's on tap.
While moving can be quite stressful in many ways, it will also lead to really good things in your life. You have the chance to begin a new chapter in your life. Focus on all the positive things going on as the transition continues. You finally have the opportunity to create the kind of spaces you've always wanted in a home of your own. Think about the many wonderful things you're going to have once you settle in. It's all waiting for you in this bright new, inviting house.
Speaking of getting your home on the market, home staging plays a key part to impress your potential buyers. It involves decluttering, rearranging, and remodeling your home. Keep in mind that homebuyers come from various walks of life, thus when staging your property ensure that it is eye-catching to everyone.
There are professional home stagers that you can hire and even experienced real estate agents can do some staging themselves. However, you can also choose to be hands-on and do it yourself. The infographic below will guide you through the home staging process:
The bottom line is that staging can increase your home's purchase offers, but you don't need to stage every room of the house. Focus your efforts on the most usable spaces of the home. Get professional advice from an established real estate group to discuss the best strategy for selling your home and prepare it for a successful open house. Call 650-550-8646 or send an e-mail to team@rosegroupre.com.
