What is the difference between hazard insurance and mortgage insurance?
Hazard insurance protects the owner of the property and the bank against loss caused by fire, hurricanes or earthquakes, and it only covers the value of the structure. Mortgage Insurance permits you to finance a larger amount since it offers the bank an additional guarantee that covers the amount of the loan and protects it if the debtor does not meet his obligation by failing to make the payments. The amount varies depending on the financing program. . It is important not to confuse for mortgage insurance with the optional insurance that pays off the mortgage in the event of the debtor’s death.
