Real estate insurance refers to policies that protect homeowners, tenants, landlords and professionals from financial loss due to property damage, liability claims or title disputes. It shifts risk from you to an insurer.
Buyers, sellers and lenders rely on insurance to close deals. It ensures lenders that collateral is protected and gives buyers peace of mind against unexpected costs.
Homeowners insurance bundles property damage and personal liability coverage. Hazard insurance is a narrower policy—often lender-required—that covers specific perils like fire or windstorm.
Title insurance shields buyers and lenders from losses due to undiscovered liens, ownership disputes or clerical errors in public records. It covers legal defense costs if someone challenges your title.
Landlord insurance protects rental property owners against damage to the building, lost rent and liability for tenant injuries.
Standard policies exclude flood and quake damage. You can buy standalone flood insurance or earthquake insurance based on your risk zone.
Most lenders require hazard insurance and title insurance to protect their loan collateral. They may force-place coverage if you let a policy lapse—at higher cost to you.
Some states mandate flood insurance in designated floodplains or earthquake coverage in high‐risk zones. Local ordinances can also dictate minimum liability limits.
Covers repair or replacement costs if your property suffers damage from covered perils like fire, windstorm, theft or vandalism.
Covers legal fees and settlements if someone is hurt on your property or if you accidentally damage another person’s property.
Title insurance pays defense costs and settlements if a claim challenges your ownership rights due to undisclosed heirs, errors or fraud.
Insurers assess replacement cost, property age, construction materials and local crime or disaster statistics to set premiums.
A higher credit score and clean claim record can lower rates. Choosing a larger deductible reduces premium but increases out-of-pocket risk.
Identify whether you need homeowners, renter, landlord or professional liability coverage. Consider additional riders for high-value items or unique risks.
Compare premium, deductible, covered perils, liability limits and exclusions. Ask about discounts, claim response times and policy bundling.
Read the fine print for exclusions (wear and tear, pest damage). Confirm that endorsements and riders are explicitly included in the quote.
Yes—lenders require hazard and title insurance. Homeowners insurance is optional if you pay cash, but it’s highly recommended.
You have the right to shop for any policy. Lenders may suggest providers but cannot force you to use one.
Your lender may purchase force-placed coverage at higher rates, and you risk foreclosure if required insurance lapses.
Contact your insurer immediately, document damage with photos, file the claim online or by phone. Turnaround varies but typically takes 15–30 days for initial response.
Insurance mitigates financial risk from damage, liability and title defects—safeguarding your home and investment.
1. Assess your risks and coverage needs. 2. Get multiple quotes. 3. Bind coverage before closing. 4. Review annually and adjust limits.
