Real Estate Dictionary, Insurance Edition

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Every industry has their own language.  There terms they throw around like everyone knows what they're talking about but no one outside the industry really does.  In most cases it's okay.  I don't need to know what amperature and inductor mean as long as my electric works.  But in Real Estate, it's your money and your home we're talking about, so a little education can go a long way.

There are a LOT of Real Estate terms, so I'll break them down by category.  Here are a few insurance terms to get you started.

Realtor (Pronouced Reel-tor)
According to the National Association of Realtors, "REALTOR® is a federally registered collective membership mark which identifies a real estate professional who is member of the NATIONAL ASSOCIATION OF REALTORS® and subscribes to its strict Code of Ethics."

In reality, a Realtor is someone who sells your home in record time, finds your dream home and solves problems you never knew existed!


Mortgage Insurance
An insurance policy that compensates lenders or investors for losses due to a buyer defaulting on a mortgage.  While you pay for the coverage, it actually protects your lender, not you.  Yes, it's an unfortunate extra expense, but you have to remember your lender is putting a lot of faith in you.

This illustration shows what private mortgage insurance is, including details that it is for homeowners who put less than 20% down on a home, it protects the lender and not the borrower, and that it may come with hefty fees.

Title Insurance
Protects both the Real Estate owner and the lender from encombrances, leins or defects in the title or actual ownership of the property.

What Is Title Insurance And Why Do I Need It - New Orleans, LA ...

Flood Insuarance
The specific insurance against property loss due to flooding.  This is a rider in addition to standard homeowner's insurance.

What the Gov. Doesn't Want You to Know About Private Flood Insurance

Buying or selling a home can be stressful but knowing a few terms can help make the process feel so much less intimidating.  If ever you need to know more, just refer to my other Real Estate Dictionary posts.  Or better yet, ask your friendly neighborhood Realtor!

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