Many people assume that title insurance and homeowners insurance are the same. But the fact is that these two types of insurance cover very different things. It’s important to understand the differences before beginning a real estate transaction. In this article, we are going to explain the differences between title insurance and homeowners insurance.
Homeowners Insurance
Typically, homeowners insurance covers certain loss or damage to your property. It may also include liability, loss of use, and medical expenses if an accident occurs on your property. If your property is damaged in a fire, your homeowners insurance will help cover the damages.
Title Insurance
Title insurance is an equally important type of insurance that essentially covers your ownership interest in the property. When you get a title insurance policy, your title company does a thorough title search and resolves any title defects in the chain of title (any prior liens, encumbrances, and the like). If a person brings a claim to your property, your title insurance policy will cover your legal expenses relating to the claim. Having an owner’s title insurance policy is essential to protect your property from potential claims brought as a result of defects in title.
Twin Cities Commercial Title Company
If you are engaged in a commercial transaction and want to protect your interest in the property, contact a commercial title company as soon as possible. At Commercial Partners Title, we have more than three decades of experience facilitating commercial transactions for our clients in Minnesota and across the country. We make it a point to provide unparalleled service and develop long-lasting relationships with our clients. We work with several national title companies to ensure quality service to our clients no matter where your transaction is taking place. Contact our team of title closers, underwriters, and escrow agents today to talk about your transaction.