Contrary to what some people think, mortgage insurance and home insurance are not the same thing.
Mortgage Insurance is insurance that covers the rupee amount of your mortgage, in case you default. If you were to die or become seriously ill and unable to pay your mortgage, mortgage insurance would pay off the remaining balance of your mortgage.
Home insurance, on the other hand is insurance that you buy to cover the replacement cost of your home should it be damaged by earthquake, fire or other accidents. Home insurance also covers the replacement cost of your belongings should they be damaged or stolen.
To sum it up, the purpose of home insurance is to protect the homeowner, while mortgage insurance is to protect lenders.
Home insurance, on the other hand is insurance that you buy to cover the replacement cost of your home should it be damaged by earthquake, fire or other accidents. Home insurance also covers the replacement cost of your belongings should they be damaged or stolen.
To sum it up, the purpose of home insurance is to protect the homeowner, while mortgage insurance is to protect lenders.
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