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Is mortgage insurance like home or auto insurance?

April 26, 2017auto insurance Home mortgage insurance

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Is mortgage insurance like home or auto insurance?

1 Answer

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Yes. Mortgage insurance requires payment of a premium. Mortgage insurance is for protection against loss, and is used in the event of an emergency. If a borrower can not repay an insured mortgage loan as agreed, the lender may foreclose on the property and file a claim with the mortgage insurer for some or most of the total losses.