• The Nitan Soni Group

What's the Difference?


Insurance is an important part of purchasing a home. Not only does it help protect yourself and your lender from financial loss, but it is often required as part of the purchase. There are many types of insurance available but there are two that are most common. Understanding the difference between them is an important step in owning a home.


Homeowners Insurance


A form of property insurance that financially protects the homeowner against future damage to their home and belongings. This type of insurance also provides liability protection against any accidents that nonresidents may have while on your property.


Homeowners insurance is not required by law like car insurance, but all mortgage lenders will require it and even if you do not have a lender, it is a good idea to have. Think about if a storm caused major damage to your home, you don’t want to be stuck with that repair bill, so you protect yourself with homeowners insurance.


Title Insurance


A form of indemnity insurance designed to financially protect the homeowner and/or lender from defects in a title. Ensuring that the home you purchase has a “good” title is part of the home-buying process, but there is the chance of some unknown issue from the past coming up that can make the title “bad,” therefore, threatening your home ownership.


The most common claims filed against a title include:

· Outstanding liens

· Back taxes

· Conflicting wills


Title insurance comes in two forms: Owners and Lenders


Owners’ policies are optional and are designed to financially protect the homeowner from any past title issues that were not uncovered prior to settlement.


Lenders' polices are similar but designed to protect the mortgage company only. They are required by the lender for anyone who gets a mortgage. Keep in mind that although the Lenders policy is required by the mortgage company it is still the responsibility of the buyer to pay for.


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