It's your investment, why not protect it? Insurance is a must if you are a homeowner and something to consider if you are renting. Whether you own or rent, policies will include personal liability coverage, which provides financial protection if a person is injured on your property. Also, be aware that many companies offer discounts when purchasing multiple policies (i.e., home and auto.)

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> Renter's Insurance
> Additional Coverage
> Title Insurance

Most lenders require this insurance prior to the closing, as it combines personal liability insurance and hazard insurance to protect both the property and its contents. Your mortgage lender may only require coverage in the amount of the loan, but you might want to consider a policy that pays full replacement cost on your property and its contents. Condominium owners would purchase a policy providing protection for additions and alterations to the parts of the building owned, as well as personal belongings.

From CDs to the futon, renters also have the option to protect their possessions even if they do not own a home. Renters insurance will cover the loss of personal items due to fire or other unfortunate accidents and is often very affordable. If your property is damaged while renting, it will not be covered under the policy of the building owner; only you can insure your personal belongings.

Based on your circumstances, you may want to purchase additional coverage on your policy. Most any type of flooding coverage must be purchased separately, including flooding due to a sewage backup. You may also want to investigate in additional coverage protection for expensive jewelry and art collections, which may not be included in your base policy.

Required for the purchase of a home, title insurance protects the mortgage lender from hidden title defects, including liens that may prohibit the title transferring from the seller to the buyer, which couldn't be detected in a title search. The title insurance company will, at its own expense, defend the title and pay losses within the coverage of the policy if they occur. The cost of title insurance is part of a buyer's closing costs.

While lenders only require a buyer to purchase a lender's policy, protecting the lender's investment, a buyer can also choose to purchase an owner's policy, which protects the buyer's equity. Without a title insurance policy, you may not be fully protected against mistakes in examination of the title of your new property, and as a result, you may be held fully accountable for any prior liens, judgments or claims brought against your new property. Your policy insures that if such an occasion arises, you will be defended free of charge against all covered claims and paid up to the amount of the policy to settle valid claims.

When purchasing a home, both you and your mortgage lender will want to be certain that the seller actually owns the property and can transfer title to you. Your title company may conduct the following searches:
- history of ownership
- a tax search to determine present status of real estate taxes against the property
- and a judgment and name search to identify if there are any liens against the seller that may affect the property.

The title company may also conduct the settlement, or closing, where buyers sign their final papers in preparation for title transfer. View Live Baltimore's list of preferred title companies here .