Welcome to the sixth post in a series of 7 posts covering the more important issues about buying a home in Northern Nevada.

In the first post, we covered the topics  "Why Should I Own A Home?" and "Why Should I Use a REALTOR®?".

In the second post, we covered "Real Estate Commissions Explained" and "7 Steps to Prepare for Home Ownership".

In the third post, we covered "Your New Northern Nevada Home Wish List" and "Tips for Finding the Perfect Neighborhood".

In the fourth post, we covered "Get Your Finances In Order" and "Think Like a Lender: Let's Do The Math".

In the fifth post, we covered "What To Expect When Writing The Offer" and "What Your Northern Nevada Home Inspection Should Cover".

Whether you've owned a Northern Nevada home before, or you are a first time Northern Nevada home buyer, having a Buyer's Guide can be a very helpful tool before, during, and even after the homebuying process.

Since most people don't buy and sell homes every month, let alone every year, we have put together a fantastic 36-page "Just For Buyers" Guide courtesy of GreatNevadaHomes.com.

In this post, we'll be covering "Things You Should Know About Homeowner's Insurance" and "What Exactly Is Title Insurance, Anyway?".

Things You Should Know About Homeowner's Insurance

1. Look for exclusions to coverage. For example, most insurance policies do not cover floor or earthquake damage as a standard item. These coverages must be bought separately.

2. Look for dollar limitations on claims. Even if you are covered for a risk, there may be a limit on how much the insurer will pay. For example, many policies limit the amount paid for stolen jewelry unless items are insured separately.

3. Understand replacement cost. If your Northern Nevada home is destroyed you’ll receive money to replace it only to the maximum of your coverage, so be sure your insurance is sufficient. This means that if your home is insured for $150,000 and it costs $180,000 to replace it, you’ll only receive $150,000.

4. Understand actual cash value. If you choose not to replace your Northern Nevada home when it’s destroyed, you’ll receive replacement cost, less depreciation. This is called actual cash value.

5. Understand liability. Generally your homeowners insurance covers you for accidents that happen to other people on your property, including medical care, court costs, and awards by the court. However, there is usually an upper limit to the amount of coverage provided. Be sure that it’s sufficient if you have significant assets.

What Exactly is Title Insurance, Anyway?

Title Insurance is a type of insurance that protects the purchasers from obtaining something that is not legal to purchase or has other undisclosed debts attached to it.

There are many situations that can arise. Government agencies, contractors, lenders, creditors, and the Internal Revenue Service may lay claim to a property, sometimes without the owner even being aware of it. Sometimes a deed can surface that pre-dates the public record, putting ownership in question. All these situations jeopardize the purchaser’s rights to the property. Title insurance provides the Northern Nevada homeowner with coverage against such an occurrence.

1. It protects your ownership right to your home both from fraudulent claims against your ownership and from mistakes made in earlier sales, such as mistakes in the spelling of a person’s name or an inaccurate description of the property.

2. It’s a one-time cost usually based on the price of the property.

3. In the Northern Nevada area, the owner coverage is typically paid for by the seller and the lender’s coverage is usually paid for by the buyer. However, this can always be negotiated.

4. There are two types of policies: lender and owner. A lender’s title policy protects the lender’s interest in the property, typically limited to the amount of the loan. For example, if you have paid a 20% down payment, the lender’s policy will be limited to 80% of the sales price, since that is the value of the lender’s investment. The owner’s policy protects you on the full value of the property today (100% of the sales price), as well as the future value of the property until you choose to sell it.

5. Discounts on premiums are sometimes available if the home has been bought within only a few years since not as much work is required to check the title. This is called a “reissue rate”. Your REALTOR® will ask the seller for his title insurance policy in order for your to receive a discounted reissue rate when applicable.

In the seventh and final post in this series, we'll discuss "Mortgage Escrow Accounts Explained" and "Understanding Closing Costs". If you'd like a FREE copy of our complete 36 page Northern Nevada "Just for Buyers Guide" just let us know. We're happy to provide you with one to assist you on your road to home ownership.

Posted By: Christianne Gordon - Northern Nevada Real Estate Agent - RE/MAX Realty Affiliates, specializing in Carson Valley Real Estate and Northern Nevada Real Estate.