Business Development Officer, T.D. McNeil Insurance Services, Fresno, California
There are at least two contracts that are called "mortgage insurance." The first is a policy required by the mortgage company that protects the mortgage company in the event that the borrower fails to meet their obligations. The second is a life insurance policy written to provide sufficient money to retire the mortage should death occur prior to the end of the policy term.
A homeowner's policy, is a combination of liability and property insurance that makes an insured "whole" as defined in the policy in the event of loss by lawsuit arising from the use of the "home" or a physical loss from a covered peril (fire, storm, and many others.)
Principal Agent, Patriarch Associates,LLC, Opelika, Alabama
Hello! I hope I can adequately answer your question. Mortgage insurance is basically life insurance, and either protects the family of a homeowner from a major debt if he or she should die, or protects the mortgage company's interest by ensuring they are paid any outstanding balance on monies owed to them at the passing of the insured. On the other hand, homeowner's insurance is property/casualty insurance designed to pay costs associated with an event or casualty that causes damage to the home or other structures on the covered premises. Thanks for the opportunity to share this information with you!
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A homeowner's policy, is a combination of liability and property insurance that makes an insured "whole" as defined in the policy in the event of loss by lawsuit arising from the use of the "home" or a physical loss from a covered peril (fire, storm, and many others.)