Definition
Insurance that protects against damage to the home, personal liability, and loss of personal property. Mortgage lenders require homeowners insurance as a condition of the loan. Standard policies cover fire, wind, theft, and liability but typically exclude floods and earthquakes, which require separate coverage. Average annual cost is $1,200-$3,000 depending on location and coverage.
Related Mortgage Terms
- Closing Costs
Fees and expenses paid at the finalization of a real estate transaction, typical...
- Escrow
A neutral third-party account that holds funds during the home purchase process ...
- Private Mortgage Insurance (PMI)
Insurance required by conventional lenders when the down payment is less than 20...
- Amortization
The process of paying off a mortgage through regular monthly payments of princip...
- Annual Percentage Rate (APR)
The total annual cost of a mortgage expressed as a percentage, including the int...
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