Did You Know That Title Is An Insurance?

Insurance of all types is crucial for the smooth functioning of real estate markets. Most mortgage financing is insured, through private mortgage insurers or public insurers like FHA, the U.S. Department of Veterans Affairs, and the Rural Housing Service. In addition, securities collateralized by mortgages—known as mortgage-backed securities—are backed by the federal government, through Fannie Mae, Freddie Mac, and, in the case of federally insured loans,  Ginnie Mae. Other types of insurance are important in real estate: title insurance, which protects lenders should questions arise about the ownership of a piece of property, flood insurance, which is required in flood-prone areas and is almost entirely provided through the federal government, and other types of disaster insurance and home warranty insurance. In addition, real estate professionals are themselves consumers of insurance, mainly errors & omissions (E&O) insurance, which helps protect them in the event they’re sued.

Real estate professionals often must buy their own health insurance, since, as independent contractors, they don’t get insurance through an employer.

Published by lmgllc6

I'm here and I can help. It is my business and passion, helping people. I'm a professional in the area of commercial & residential real estate. I'm Passionate about my work, and I want to help you. Give me a call.

Leave a Reply

Please log in using one of these methods to post your comment:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.

%d bloggers like this: