An insurance policy designed to protect the Mortgagee (lender) from any default by Mortgagor (borrower). Used commonly in loans with a Loan-to-value over 80%, and employed in the event of foreclosure and repossession.  This policy is typically paid for by the borrowers either as a component to final nominal (note) rate; in one lump sum up front; or as a separate and itemized component of monthly mortgage payment. In the latter case, mortgage insurance can be dropped when Mortgagor informs Mortgagee, or its subsequent assigns, that the property has appreciated, the loan has been paid down, or any combination of both to relegate the Loan-to-value under 80%.