Home Financing Library
When you insure your home, you should insure your home for the total amount it would cost to rebuild your home if it were destroyed.
Private mortgage insurance is a type of insurance that may be necessary for mortgages where the down payment is less than 20% of the property value. Additionally, PMI allows a home buyer greater flexibility in purchasing a home since a 20% down payment is not required.
Mortgage insurance can usually be canceled by the home buyer after you have at least 20% equity in the home. If cancellation is not requested, PMI will automatically stop once 22% equity is reached and various other requirements have been met.
A policy of title insurance is a contract of indemnity between the insured and the insuring company relating to the title to the land described in the policy, protecting the insured against loss of damage by reason of defects.
Title Insurance insures that the "record" title is good subject only to the exceptions expressly set out in the policy. It also insures against certain matters which do not appear of record, such as forgery and identity of parties.
An owner's policy protects only the owner while a mortgage policy protects only the holder of the mortgage on the property. Separate policies are required to protect both interests.
Get answers to common title insurance questions.
Flooding is not covered by a standard homeowners insurance policy. Therefore, a special flood insurance policy is required if the property is located in a special flood hazard area.