How is mortgage insurance different from other types of home insurance?
You’re probably familiar with homeowner’s insurance, which protects a homeowner if his or her house and its contents suffer from unforeseen occurrences such as weather damage or theft. Similarly, hazard insurance is designed to compensate a homeowner for any losses that occur due to specified hazards, such as fire. Mortgage life insurance provides financial protection in case of the homeowner’s death. Mortgage insurance – Genworth’s product – pays lenders for part of their financial losses when borrowers fail to repay the loan. Mortgage insurance makes it possible to buy a home with a low down payment or, in some cases, no down payment.
