What is the Difference between Homeowners, Hazard, Life and Mortgage Insurance
Insurance is such safety measure that protects the holder from any damage or loss for that thing for which it had got insurance. Today, the trend of getting insurance policies has become very common not only in developed countries, but in developing countries as well. There are various types of insurance policies. Homeowners, Hazard, Life and Mortgage Insurance are the names of some common insurance policies that everyone wants to get to secure its financial life as well as assets. If you also want to get anyone of these insurance policies and want to know about the difference between them, here is the difference between these various insurance policies.
Homeowners Insurance
Homeowners Insurance that is frequently known for its abbreviation HOI is the insurance type that deals with property insurance but particularly with home insurance. It covers all risk factors that a homeowner could face in terms of liability and property damage or loss. There is no need to deposit separate insurance premiums for liability or property loss and damage.
Hazard Insurance
Hazard insurance is another name for homeowner Insurance and it safe the insurance holder from any hazard or loss for its property and liability.
Life Insurance
Life Insurance is nothing but a deal between insurer and insured person in which the insurance company makes a promise with the person who is getting life insurance that in case of sudden or accidental death of insured person, the company with pay a handsome amount to the beneficiaries of insured person. This compensation amount normally does not affected by the premium deposited by the insured person, as it is the legal contract between insurer and insured person.
Mortgage Insurance
Mortgage insurance is the type of insurance that keeps that is granted to both borrower and investors that are involved in lending or giving some loan. This insurance policy keeps the lender or investor safe from any loss in case of being defaulted or facing default of loan.
Homeowners vs Hazard vs Life vs Mortgage Insurance
Homeowners insurance and hazard insurance are the synonyms terms of same insurance type that deals only with home insurance and keeps the person safe from any property or liability loss. On the other hand, life insurance is the policy that gives some compensation amount to the beneficiaries of insured person, in case of accidental death or death from any disease. Mortgage insurance is the insurance type that keeps both lender and investor safe from any loss in case of facing any default from paying the loan from borrower side.
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