Insurance

Protection against a specific loss over a period of time that is secured by the payment of a regularly scheduled premium.

Source: U.S. Department of Housing and Urban Development

As a part of PITI, the amount of the monthly mortgage payment that does not include the principal, interest, and taxes. Also see: homeowners insurance.

Source: Ginnie Mae

A contract in which one party agrees to pay for another party's financial loss resulting from a specified event (for example, a collision, theft, or storm damage). Lease agreements generally require that you maintain vehicle collision and comprehensive insurance as well as liability insurance for bodily injury and property damage.

Source: Federal Reserve Board

Last reviewed October 2022