Home Insurance Types & Details
Getting a mortgage? You'll need home insurance. Unsure about location of a shed, driveway, or smaller boundary issues? You may want to consider title insurance. Buying a home with five per cent downpayment? Thankfully there is mortgage (default) insurance available as many stuggle to save up larger amounts which otherwise goes towards rent. NLhomefinder agents can discuss in general aspects of home insurance types, and we always recommend you work with a real estate lawyer,who can ensure you are informed and your purchase is protected.
If you require a mortgage then you cannot get the keys to your new home without a home insurance policy in place
It's that simple. Buyers need to avoid delays, and not leave this item to the last minute. All mortgage lenders require proof of home insurance, and an actual policy in place, prior to sending any funds to your lawyer in advance of your closing. While many people leave this until the last minute, we infor, our clients to contact a home insurance company and have a sufficient policy in place asap prior to your closing.
Allowing Buyers to Purchase Sooner
The premium for mortgage(default) insurance is paid once, at the time of purchase. In Canada the purchaser of the property pays for the mortgage (default) insurance. When the lender is covered by mortgage (default) insurance the policy remains in effect as long as the mortgage remains on the title. A lender protected by a mortgage (default) insurance policy is insured in the event that the lender ultimately needs to proceed with a power of sale, and is experiencing loss in relation to the mortgage protected by the policy. Two major providors of these policys are Genworth Canada and Canadian Mortage and Housing Corp (CMHC)
Title insurance is becoming a common protection blanket for smaller title issues
Title insurance is protection from losses arising from issues related to the title of your property. This could have gone through many changes of ownership before you bought your house, and the property on which it stands went through even more. Anywhere in the chain, there might be a weak connexion that could appear to cause trouble. For example, someone along the way may have forged a signature in transferring title. Or there may be unpaid real estate taxes or other liens. Title insurance covers the insured party for any claims and legal fees that arise out of such problems. As this CBC article mentions, title insurance does not cover all risks so home owners need to be informed of their limits.
Public title documents are "searched" before closing to determine the property 's previous ownership, as well as past transactions related to it. After closing the owner wants property that is free and clear of these claims, and they usually have to be cleared before closing. Occasionally issues with title aren't found before closing, or before closing aren't discussed. These defects may make the property less marketable when the buyer eventually sells, and may also cost money to repair depending on the nature of the issue. For example, the survey may not have indicated that an addition to the property was built without permission. The property's buyer may be out of pocket if he is forced to remove the addition later.
Would I need to get Title Insurance?
Some of the risks that are frequently covered under a title insurance policy include: survey irregularities; forced removal of existing structures; claims due to fraud, forgery or duress; unregistered easements and rights of-way; lack of pedestrian or vehicular access to the property; work orders; zoning and set back non-compliance or deficiencies; etc.
Usually it has to have existed as of the policy date for a danger to be covered. Like in any form of insurance policy, certain forms of liabilities may not be protected, for example, native land claims are usually excluded and environmental hazards. Be sure to talk to your lawyer about what risks are covered and what are excluded.
When the title insurance is covering the purchaser, it remains in effect as long as the insured purchaser has title to the land. Policies may also protect those who received title as a result of the purchaser's death, or certain family members (e.g., a spouse or children) to whom the property title may have been transferred.
When purchasing a condo, some condominium corporations carry their own insurance, which can cover common areas and major structural components of the building such as roofs, elevators, windows. In this situation, a condo owner may still need to purchase home insurance for their interior and contents of their condo unit. Other condos may not provide any insurance for actual units, so the condo unit owner must purchase a similar policy to any homeowner which covers roof, exterior, windows, siding, water damage etc. Did you know NLhomefinder also allows you to search for condo properties for sale. You can also customise your search to show only certain types of price ranges, areas and condo properties, such as having underground parking which is great for real estate investors.
Protection and Peace of Mind
Home buyers and sellers are increasingly looking to do more legwork online before hiring an expert. Both younger and older home buyers value information when looking for homes online. NLhomefinder helps you to "see the big picture" and our agents are available prior to you getting pre-approved, before searching for homes, and even while searching online. Buyers who buy a house with the help of a real estate professional are more likely to use the Internet in their search. Home sellers can appreciate the value that comes with choosing to work with an NLhomefinder agent. NLhomefinder is the only search you need to make when buying your new home online, and when selling your home.
Real Estate Professional Network
NLhomefinder works with all types of related real estate companies such as mortgage specialists, real estate attorneys, home inspectors and contractor companies that use NLhomefinder to connect with customers. Let us refer you to a professional in your area.
Give us a call if you are looking for a Real Estate Attorney, Home Inspector or even someone to paint your home. We have lists of reputable companies to help you. Our partners can help cut the costs associated with buying, selling or renovating your home. Here are a few areas we can help:
Real Estate Attorney
Mobile Mortgage Specialists
Home Inspection Service
Paint & Plaster
You can contact us with your list of of needs and wants - and receive notifications about professionals in your area!
Renting / Leasing
With NLhomefinder you can search for condos, houses and apartments for rent by location, size, price and more, and share your favourites with your friends or contact an NLhomefinder agent directly to discuss leasing.