Mortgage insurance is very different from the typical types of insurance we buy to protect ourselves from financial loss. Usually, we pay an insurance company a monthly premium to help cover our home, car, or even our health from an unexpected setback, such as flood damage, an accident, or major illness.
But mortgage insurance doesn't protect a home buyer — it protects the lender from a financial loss if you don't repay your mortgage. However, you still benefit in a way.
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