No. Home Insurance protects you if your house incurs a loss due to a covered peril such as fire, wind, lightning etc. It also protects you from theft and liability if someone is hurt on your property and files a law suite. Mortgage Insurance, (I am assuming you mean Mortgage Term) is a form of life insurance that pays off your mortgage in the event of your death. Your bank may also have a form of mortgage insurance that protects the bank in the event you default.
No. Home insurance is the coverage that you get to cover your contents and your liability for owning the home. It is a policy designed to take care of the building and its contents. Mortgage insurance is typically a life insurance product that covers the financial amount owed to the mortgage company. So basically it is an overpriced term policy. I would suggest getting with an insurance professional that can work with you to protect your property as well as your financial obligations.
Business Development Officer, T.D. McNeil Insurance Services, Fresno, California
This question addresses the issue of policy names. A home policy could mean a homeowner’s insurance policy. A mortgage policy could be talking about the policy that protects a lender from default on a loan. The mortgage policy could also be talking about a term insurance policy that provides enough money to pay off the mortgage in the event of death during the term of the policy (and hopefully the mortgage.)
Another problem is that there is a variety of property insurance policies, any one of which might satisfy a lender. Knowing the list of covered perils is critical and understanding the value added in a homeowner’s form is essential.
The bottom line is that the home policy is probably designed to satisfy a lender and restore a damaged home for the benefit of the homeowner. The mortgage policy is generally designed to either insure enough money to pay off the mortgage or protect the lender against default by the borrower.
Agency Owner, The Thomas G Sheehan Agency, 27 Glen Road Sandy Hook, CT 06482
No they are two distinct types of coverage. A Homeowners' policy provides financial support in the event that your home or pesonal belongings are damaged or destroyed by a covered peril. It also protects you in the event you injure someone or cause damage to their property through the Liability coverage portion of your policy.Your Insurance Professional will be able to discuss the specifics of your policy including coverage and any policy limitations or exclusions.
"Mortgage Insurance" generally speaking is a Life Insurance policy that is taken out in the amount of your mortgage. Typically these are term policies. The idea is that shoud you die unexpectedly before your mortgage if fully paid, your family would receive enough life insurance benefit to pay off that loan and maintain the security of the home you halped to provide for them.
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Another problem is that there is a variety of property insurance policies, any one of which might satisfy a lender. Knowing the list of covered perils is critical and understanding the value added in a homeowner’s form is essential.
The bottom line is that the home policy is probably designed to satisfy a lender and restore a damaged home for the benefit of the homeowner. The mortgage policy is generally designed to either insure enough money to pay off the mortgage or protect the lender against default by the borrower.
"Mortgage Insurance" generally speaking is a Life Insurance policy that is taken out in the amount of your mortgage. Typically these are term policies. The idea is that shoud you die unexpectedly before your mortgage if fully paid, your family would receive enough life insurance benefit to pay off that loan and maintain the security of the home you halped to provide for them.
Home Insurance covers the home and your liability (generally speaking.) It protects the house from things like fire.
Mortgage Insurance covers the mortgage. It is really usually a life insurance policy to pay off the mortgage in the event of a death.
Thanks.