The Importance of Insuring Real Estate

When purchasing a property, it is imperative to ensure that you have the appropriate insurance to cover it in the case of disaster or any other potential liabilities that could result in a legal claim or potential loss. There are typically two types of insurance you want to purchase when buying real estate:

1. Homeowner’s Insurance

Homeowner’s insurance will protect you in the case of damage to your home, personal property loss, loss of use, personal claims against you for accidents occurring on your property, and medical protection that pays for medical claims that occur on your property. 

Typically, lenders will require a minimum level of homeowner’s insurance to be acquired before approving your mortgage loan. 

This setup provides a level of assurance to the lender since most potential accidents that could result in a homeowner being stretched for funds (and thus defaulting on their mortgage) will be covered by the insurance company. It will also provide peace of mind to the new homeowner. 

If you live in an area that is subject to certain natural disasters, such as tornadoes, earthquakes, hurricanes, or floods, it is possible to get an additional policy that will provide coverage in case your home is affected. This coverage is usually an add-on to the homeowner’s policy or may be an additional policy altogether.

If you are in the Daytona Beach area, you may contact a Daytona Beach lawyer to review your homeowner’s policy prior to taking on a mortgage. They will inspect it to ensure you have the level of coverage that you need.

2. Title Insurance

Title insurance is very important to prospective homebuyers. Title insurance ensures that you are protected from many potential issues, including:

• Title forgeries
• Back taxes
• Filing errors
• Unknown heirs to the estate who claim ownership
• Inconsistent or conflicting wills
• Liens from unpaid home equity lines of credit or contractor bills
• Undocumented easements

If any disputes arise after the home buying process, having title insurance will ensure that your legal costs are covered to protect your ownership rights. 

While homeowner’s insurance provides protection for the future, having title insurance protects the policyholder from any past title discrepancies from the seller or previous owner that may be revealed during or after the purchasing process. 

Title insurance typically ranges from $500 to $3,500 but may vary based on location, the cost of the home, and the extent of the coverage. 

If you are considering purchasing a home in the Daytona Beach area, make sure you consult with a Daytona Beach real estate attorney to ensure that your title insurance policy provides the appropriate level of title insurance for your home.

Real Estate Attorney in Daytona Beach

When purchasing a property in Daytona Beach, it is important to consult with a real estate attorney in Daytona Beach who is familiar with legal and ownership issues that commonly arise in the region. 

A good attorney can ensure that your property and finances are safely protected from any potential disaster or legal encumbrance that arises. They will advise you of the appropriate level of insurance to have and review all real estate contracts.