What The Difference Between Mortgage Insurance And Homeowners Insurance? 
`` Mortgage Insurance '' tends to be used as a reference to Term Life Insurance that is designed to cover your mortgage principal balance should you die . The proceeds could then be used by your loved ones in order to pay off the loan and remain in your home . Homeowners Insurance is a Property and Casualty insurance contract that covers physical damage or loss to your home and personal belongings as well as liability protection for you and your family in the event that you hare held legally liable for injury or damage caused to someone else 's property . 