What types of insurance do I need for real estate transactions?

When engaging in real estate transactions in North Carolina, it is important to understand the types of insurance needed to protect all parties involved. Typically, buyers of real estate property will want to obtain owner’s title insurance, which is provided by a title insurance company. This type of insurance will protect the buyer’s interest in the property from any potential claims made by third parties due to past events or rights on the property. Sellers of real estate property typically must obtain a seller’s title insurance policy. This policy will guarantee the seller’s title to the new buyer. In addition, buyers may need to purchase mortgage insurance, which is typically required when taking out a mortgage loan. Mortgage insurance ensures the lender is protected in case the borrower defaults on the loan. Another important insurance policy to consider when engaging in real estate transactions is home insurance. Home insurance will help protect the home and the owner from damage due to accidents, theft, vandalism, and other unforeseen issues. This type of policy will help cover repair or replacement costs in case of any losses. Lastly, depending on the type of property, buyers may also want to look into purchasing additional insurance policies, such as flood insurance, earthquake insurance, or windstorm insurance. Ultimately, it is important to speak with a real estate attorney or insurance agent to determine the types of insurance needed for real estate transactions in North Carolina. Knowing the laws and understanding the types of insurance needed will help ensure the real estate transaction is properly protected and all parties are satisfied.

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