Top Mortgage Insurance Companies

Mortgage insurance, also known as private mortgage insurance or PMI, is a type of insurance that is required on all residential mortgages with a loan-to-value above 80%.

Mortgage insurance is not a type of homeowners insurance. Instead, it protects the lender in cases where homeowners default — it does not protect the homeowner if they start missing monthly payments on their mortgage.

Just as consumers need protection, homeowners insurance companies do as well to avoid damage being done to their assets. This is why this type of mortgage insurance exists.

Today, we’re introducing you to some of the top mortgage insurance companies that provide dwelling coverage services.

What are the top mortgage companies?

Last year, MGIC Investment Corp. was the top mortgage insurance company in the United States, with $1.32 billion in direct insurance premiums written. The Milwaukee-based insurance company claimed a healthy 24.2% of total market share and nearly doubled the volume of the second-largest mortgage insurer.

PMI Group Inc., the second largest mortgage insurer, wrote $839 million in premiums and grabbed 15.4% of the market share.

American International Group (AIG) was a close third with $816 million in insurance written, claiming 15% of market share.

Radian Group and Genworth Financial rounded out the top five with totals not far off that of PMI Group and AIG.

Then things dropped off considerably, with the tenth mortgage insurer on the list underwriting only $3,000 in business.

Why mortgage insurance?

Remember, mortgage insurance is required on all residential mortgages with a loan-to-value above 80%.

In other words, if you put down less than 20% or have less than 20% equity in your home when you refinance, your bank or lender will require you to take out mortgage insurance.

This is great for lenders, in the instance that homeowners default, especially on high-value homes. But it’s a costly investment for homeowners. However, from the lender’s point of view, these types of coverage can be incredibly helpful. If you still have questions, or you’re wondering whether you’re paying for it on your homeowners policy, you can always speak to your insurance agent about it.

Comparing the Top Mortgage Insurance Companies

Even though this may not fall into the common types of coverage searched for, mortgage insurance is still a necessity. If you need to look into these coverage options, there are many mortgage insurance companies out there. You don’t necessarily have to focus on the top mortgage insurance companies, though they do tend to have a good reputation on their side.

What you could do is use online comparison tools to compare the top mortgage insurance companies in your area. Use our free quote comparison tool above to ensure you make confident investment decisions and find the best, most affordable mortgage insurance rates. (For more information, read our “Top Ten Insurance Companies in the United States“)

Read more:

• Is homeowners insurance included in the mortgage?
• Switching Homeowners Insurance Companies When You Have a Mortgage
• Top 10 Insurance Complaints
• Top 10 Homeowners Insurance Companies
• Top Homeowners Insurance Companies in Texas