What is the difference between homeowners insurance and title insurance?

Homeowners insurance covers loss or damage (from fire, vandalism, or other natural causes) to your home, other structures on your property, or personal property kept in your home. It also provides coverage for loss of use, liability, and medical expenses for accidents that occur on your property.

Title insurance protects you or a lender against financial loss from real estate title defects or liens against a property. For example, a basic owner’s policy can protect you from previous owners making a claim of ownership on the property, or a special assessment or unpaid property tax that was not found at the time of purchase.