What Is Hazard Insurance?
Hazard insurance is a part of a homeowners insurance policy and is designed to cover the physical structure of a house and not bodily injuries. The structure of the house includes the walls, foundation, roof, and more. The term "hazard insurance" is a term used by lenders instead of an actual type of insurance policy that can be purchased on its own. Lenders may require hazard insurance to protect the structure of the home, which leads to the misconception that hazard insurance is a type of policy.
In reality, hazard insurance is just the part of the homeowners policy that covers the house, but it can't be purchased separately from homeowners insurance. If a lender requires this type of insurance, a homeowners insurance policy will meet that requirement.
What Does Hazard Insurance Cover and Not Cover?
Hazard insurance covers damage to the physical structure of the home or the "hazards" a home could face. This is what hazard insurance covers:
- Fire damage. If a home is damaged in a fire, hazard insurance will cover the cost of repairing the structure itself.
- Hail. Large hail or heavy hail storms can cause damage to many things, including a home. Hazard insurance covers that damage.
- Lightning. Lightning strikes are rare, but they can cause significant damage. Hazard insurance covers the damage from the strike and potential fires.
- Theft. If a home is damaged from a theft, hazard insurance covers it. Other parts of a homeowners insurance policy will cover the stolen property.
- Vandalism. If a home is vandalized, hazard insurance will cover the damage.
- Fallen trees. Storms can cause trees to fall over, and hazard insurance can protect against the damage that would cause.
- Explosions. Gas leak explosions can cause extensive damage to a home. Luckily most explosions are covered by hazard insurance.
- Vehicle damage to a home. Rarely, a vehicle will collide with a home. Hazard insurance often covers the damages to the home should that happen.
Homeowners insurance policies—and therefore the hazard insurance portion—are all different, so different hazards may be covered under a certain policy.
In general, there are two things that hazard insurance wouldn't cover: flooding and earthquakes. Both of these hazards are covered by separate parts of homeowners insurance policies or even separate policies entirely.
Is Hazard Insurance Affordable?
Hazard insurance is included in a homeowners insurance payment. The exact cost of an insurance policy including hazard insurance will vary depending on the value of a home as well as the deductibles selected. But hazard insurance doesn't need to be expensive to be extensive.
Acrisure insurance provides you with the most affordable homeowners insurance and hazard insurance options. Let us help you find a policy that will protect your home and property without unreasonable expense. Contact us to help you connect with the right provider.
For additional information, please visit our website at Acrisure.com. Products or services identified herein may not be available in all jurisdictions. The information and descriptions contained herein (a) are not necessarily intended to be complete descriptions of all applicable terms, conditions, and exclusions of the policies referenced, (b) are provided solely for general informational purposes, and (c) should not be viewed as a substitute for legal, regulatory, or other advice on any particular issue or for any particular reason. The advice of a professional should always be obtained before purchasing any insurance product or service, and you should not rely on the information provided herein for the prevention or mitigation of risks or as a full and complete explanation of coverage under any insurance policy. While the information contained herein has been compiled from sources believed to be reliable, no warranty, guarantee, or representation, either expressed or implied, is made as to the correctness or sufficiency of any representation contained herein.
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