Residential title insurance covers unpermitted work. However, according to roofing Trenton Michigan, title insurance can never cover property damage. Instead, the title insurance covers losses from an authority requesting the repair or removal of property features that a former owner had erected without a permit. This type of insurance may also compensate for property loss value from the compliance work. Therefore, it is better to know the difference between homeowners’ insurance and residential title insurance.
Roofing Trenton Michigan: Understanding Homeowners Insurance and Title Insurance
The homeowner’s and residential title insurance are often confusing to homeowners. Though they both offer protection for properties. However, they work differently. For instance, a homeowner noticed the rug in the basement was soaked and discovered water getting in from the side of the house. This means there is a crack in the foundation wall. However, because it has nothing to do with unpermitted work from the former owner, there will be no compliance order for coverage.
What Does Residential Title Insurance Cover?
A residential title insurance policy protects homeowners from losses such as title defects that the current property owner knows nothing about. It also covers liens on the property if the former owner has unpaid debts. It covers encroachment problems, title fraud, and other kinds of title issues that would obstruct you from selling, leasing, and mortgaging the property whenever you want.
What Is Not Protected by the Residential Title Insurance?
It is safe to carefully go through your policy to understand what your title insurance protects. There may be some exclusions such as environmental dangers, zoning bylaw trespassing, etc.
Types of Residential Title Insurance
There are two types of residential title insurance policies; the owner and the lender. The owner’s policy protects the total purchase price, while the lender policy protects the mortgage amount.
Homeowner’s Insurance
A homeowner’s insurance policy requires a monthly premium payment. This policy protects against loss and damage to your property and the structures on your property. A standard homeowner’s insurance policy offers you these protections:
- Personal property coverage: Protects items inside the home. These items may include clothing, furniture, jewelry, etc. The policy will state the maximum amount of personal property coverage it can cover.
- Personal liability protection: This pays for your legal defense if anyone gets hurt on your property. The payment coverage depends on the policy limit. If the cost exceeds the policy coverage, the balance would be paid out of the homeowner’s pocket.
- Dwelling coverage: This covers you from natural disasters like wind, fire, and lighting. In most cases, earthquakes and floods are bought separately.
- Other structure coverage: Covers your fences, sheds, and detached garages from all kinds of natural disasters
- Medical payment coverage: If someone gets wounded on your property and decides not to sue, this coverage will fend for the medication and treatment.
- Loss of use coverage: If the home becomes unsafe for living due to an event covered by your policy, you will get coverage for expenses such as hotel and meals payment until the house is fit for living. There is a limit to every coverage. So it is better to check with your insurance broker.
Conclusion
Don’t be confused about what type of insurance to get. Experts in roofing Trenton Michigan advise that you invest in residential title insurance to complement your homeowner’s insurance. This will protect you from unexpected costs related to your property.