This is a common mix-up, but they are in fact two very different things.
Mortgage Insurance is required on most loans that have less than 20% equity. This is a contract that insures the lender against loss caused by a mortgagor’s default on a mortgage. Mortgage insurance can be issued by a private company or by a government agency.
Homeowners Insurance is the insurance that covers any loss or damages to your home, belongings or any other accidents that are outlined in your policy. These are separate from the mortgage all together, and are in place to protect both the borrower and the lender against damage to the property.
