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The 4 most Common Types of Insurance heard around the closing table?

aubrey524

TITLE INSURANCE

Title insurance perfects the Owner’s or Lenders title rights by defending against any defects in title that may arise, that may result in financial loss, and even potentially, loss of ownership. The Owner’s Title Policy (OTP) protects the buyer for as long as the buyer has an interest in the property. The Mortgagee Title Policy (MTP) is issued by the title company to the lender and protect the lender’s interest.


HOMEOWNER’S INSURANCE

Homeowner’s Insurance provides protection to the actual home and personal property in the home. Homeowner’s Insurance is purchased to protect the structure of the home and its contents from adverse events.


FLOOD INSURANCE

Flood Insurance is an insurance policy that is purchased to cover dwellings from losses sustained by rising water and flooding.


PRIVATE MORTGAGE INSURANCE

Private Mortgage Insurance (PMI) protects the lender in the event that the Borrower stops making payment on the mortgage. The lenders typically require mortgage insurance to be purchased by borrowers who make smaller down payments, of less than 20%.



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