Title insurance is important when buying a home since it involves researching the public record to determine you’ll have all the ownership rights once you close.

The title insurance is in place in case a mistake was made in the title search and a person comes forward with a legitimate claim of ownership to your home. Should the claim be verified, your title insurance pays the new found owner his claim and you get to keep the house.

Private mortgage insurance or PMI is an insurance policy that protects the lender from loss on mortgages with less than 20% equity in the event of foreclosure…and you pay for it!

Don’t confuse hazard or homeowner’s insurance protects you from a loss like a fire with private mortgage insurance. PMI protects the lender if you don’t pay.

Hazard insurance covers replacement costs for damages caused by fire, wind or disaster that might affect thevalue of the home. Hazard insurance also includes liability and theft coverage.

Hazard Insurance

A hazard insurance policy is a package policy that combines more than one type of insurance coverage in a single policy.

Congress passed and the President signed into law recently the tax deductibility of mortgage insurance premiums.

Halleluiah!

This is huge! I know I make a big deal about what most of you would almost surely ignore. The King of Real Estate Minutiae and all…but this one really is a big deal.

So listen up, there are a few rules to get the most out of the new law, okay?