Definition: The term "insurance vs mortgage insurance" refers to two types of policies that are often used in connection with housing investments. 1.

Property Insurance:

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Definition:

Property insurance, also known as home insurance or home owners insurance, provides coverage for damage to a dwelling, including its contents and fixtures. It protects the owner from liability for loss or damage caused by third parties who enter onto or over their property. 2.

Mortgage Insurance:

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Definition:

Mortgage insurance is a type of mortgage protection policy that guarantees repayment of principal and interest on a loan made to secure the purchase or refinancing of a home, with the lender providing coverage against losses in the event that the borrower defaults on the loan.

Detailed Definition:

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Insurance:

It covers the loss or damage caused by certain events during the period of time covered by the policy. -

Mortgage Insurance:

This is typically provided when borrowing money from a bank, credit union, or other lender to purchase a home. It protects the borrower against potential losses if the property is sold before the loan is repaid.

Comparison:

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Property Insurance:

Provides direct financial protection for the owner of the dwelling, including its contents and fixtures. -

Mortgage Insurance:

Provides financial protection to the borrower, covering repayment of principal and interest on the loan secured by the home.

insurance vs mortgage insurance