The difference between Homeowners insurance and Mortgage Insurance for people who didn't realize they were different.

AI: Homeowners insurance and mortgage insurance are different types of insurance that serve different purposes:

Homeowners insuranceAlso known as hazard insurance, this policy protects your home, belongings, and you from liability. It can help repair or replace your home and contents if damaged by fire, storm, theft, or other perils. Homeowners insurance is separate from your mortgage loan agreement and is not included in your mortgage.

Mortgage insuranceAlso known as private mortgage insurance (PMI), this policy protects your lender if you default on your mortgage loan. Lenders typically require PMI if your down payment is less than 20%. PMI payments are often included in your mortgage payment.
Homeowners insurance protects your investment in your home and belongings, while mortgage insurance protects the lender's investment in your home.