Mortgage Glossary

Property Insurance (or home insurance)

What Is Property Insurance or Home Insurance?

Property insurance or home insurance is insurance that protects a home from specific types of damages or damage to contents, including but not limited to water and fire damage.

For every mortgage transaction, a lender will require that the home owners have property insurance or home insurance add the lender to the property insurance or home insurance policy.

Although often confused, property insurance and home insurance is not default insurance or life or disability insurance.

Property insurance or home insurance can be arrange by a borrower’s lawyer prior to the closing date, and will be required as a mortgage condition, to complete a mortgage transaction.

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