Hazard insurance is a type of insurance that is part of a homeowners insurance policy. It generally refers to coverage for the structure of your home only, protecting against damage caused by natural disasters such as fire, hail, wind, lightning, snow, ice, sleet, and rainstorms. It can also cover damage caused by vehicles, fallen trees, theft, and vandalism. Hazard insurance is usually required by mortgage lenders before they will issue a loan because it is the only portion of the homeowners insurance policy directly related to the home structure itself.
It is important to note that hazard insurance is not the same thing as homeowners insurance, but rather a subsection of it. Homeowners insurance includes other coverages that protect against different kinds of damage, such as personal property, liability, and additional living expenses.
