The essential idea behind insurance is to protect you in the event of catastrophe. There are several forms of insurance associated with homeownership.
Purchased with a one-time fee at closing, title insurance protects you in the event that the title is found to be flawed or invalid. Coverage includes "lenders" coverage, which protects your lender up to the mortgage amount, and "owners" coverage, which protects you for the mortgage amount plus your down payment.
Why Title Insurance? »Homeowner's policies are required to lenders and cover fire, theft, and liability after you pay a minimum deductable. Coverage and exclusions vary widely, so shop several companies before deciding on the best policy for you.
12 Ways to Save on Homeowner's Insurance »Flood insurance provides limited damage coverage in the event of a flood. Property located with a federally designated flood zone is required to maintain flood insurance.
FloodSmart.gov »A home warranty may be purchased by the buyer or by the seller on behalf of the buyer. This insurance covers the mechanical functions of your new purchase including the electrical and plumbing systems, appliances, and hot water heater. The buyer is required to pay a small deductable, usually between $55-75, per repair.
HomeWarrantyExperts.com »For just a small extra amount, you can purchase an enhanced Title Insurance Policy. This adds numerous additional coverages providing much greater protection against loss.