What Is The Difference Between Mortgage Insurance And Homeowners Insurance? 
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 -LRB- fire , storm , and many others . -RRB- 