Homeowners insurance

A mortgage is secured by the house. Lenders typically require insurance so a covered loss does not leave the collateral unprotected. The policy is between the owner and the insurer; the lender may be named as a mortgagee. Premiums are often paid through an escrow account along with property taxes. Hazard insurance is a closely related label some sources use; this page uses the consumer homeowners-insurance name.

Consumer glossaries describe homeowners insurance as coverage for the home that a lender may require. It is not mortgage insurance, which protects the lender against credit loss.

Escrow analyses and monthly-payment totals often include this premium. Treating it as mortgage insurance misstates who is protected.

• Escrow account
• Property tax

Homeowners insurance is not mortgage insurance or PMI.