There are lots of kinds of insurance. There’s homeowner
insurance, auto insurance, health insurance, life insurance, liability
insurance, … You can insurance just about anything of value. “We focus mostly on property and casualty insurance,” says
insurance agent Amanda Campbell of Smith Allen Insurance. But she and other
insurance companies offer all kinds of insurance. “You can insurance your pet
for loss, accidents, medical bills and more.”
“You can also get wedding insurance,” she adds. “It covers
loss of deposits or money lost on wedding expenses if you have to move your
date due to weather or the venue ends up flooding or something. It can even
cover if you serve alcohol and someone leaves and has an accident.”
And speaking of alcohol - “You could insure your really nice
wine collection if all the bottles were to break or were ruined.” She says. “You
can even insure body parts. That’s more for famous people.” Apparently, J Lo
has her butt insured to protect her ‘assets’.
Regardless of what you want to insure or protect, almost all
insurance is purchased annually. You typically pay for it annually or monthly
and you must continue to pay the premiums in order to continue to receive
coverage.
That’s where title insurance and other types of insurance
differ dramatically. When you purchase a property and get title insurance, you
pay the premium up front at closing and it stays in effect for as long as you
own your home.
Lots of new homeowners get confused between their title
insurance, homeowner’s insurance and home warranty. Homeowners insurance
protects against loss or damage to your home and contents. It covers things
like fire, flood, theft. A home warranty is a service contract that covers
repair of most major home appliances and systems. They typically cover items
like air conditioning, water heaters, and plumbing.
Title insurance protects your ownership in your property. It
insurances the owner against someone else trying to lay claim to it.
Most insurance protects against what could happen in the
future. Title insurance protects against what could have happened in the past.
Homeowners – and their mortgage companies – want to be covered against losses
from ownership issues that existed before they bought the property. No one
wants a previously an unknown heir, ex-spouse, lien-holder, … showing up to
claim ownership.
Before a title company issues title insurance, they conduct
research for outstanding liens, encumbrances or other title defects. But there
could always be unknown factors. Like other types of insurance, title insurance
gives the owner protection against what could be catastrophic loss. Because,
life can be like a box of chocolates. You never know what surprises it might
hold.
The opinions expressed are of the individual author for
informational purposes only and not for the purpose of providing legal advice.
Contact an attorney to obtain advice for any particular issue or problem.
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