Mortgage Indemnity Insurance
An insurance premium sometimes required by a mortgage lender if you are borrowing more than a certain percentage of the value of your home – usually 75%. The idea is that if the value of the property falls beneath 75% of the original valuation for any reason, the insurance will pay out. In the unfortunate event that that happens, the insurance company will usually pursue you for the amount they paid the lender, even though you paid the premium yourself. Shop around – some lenders do not require mortgage indemnity insurance.