Hazard insurance is a type of insurance that protects your home from natural disasters or hazards. It is usually a requirement when qualifying for a mortgage, and some regions also require the purchase of a Natural Hazard Report, which shows if your property rests in a natural hazard zone or high-risk area. Hazard insurance generally covers the physical structure of your house and is part of a standard homeowners insurance policy. It can pay to repair or rebuild your home after a fire, hailstorm, or other disaster. Hazard insurance is not the same thing as homeowners insurance, but it is part of a homeowners insurance policy. Mortgage lenders often require you to have homeowners insurance to get hazard coverage.
It is important to note that hazard insurance wont cover things like liability, injuries to you or your guests, or damage to/theft of your personal belongings. It also wont cover floods (other than ones due to a burst pipe or plumbing issue) or earthquakes.
In summary, hazard insurance is a subsection of homeowners insurance that protects the structure of your home from natural disasters or hazards. It is usually required when qualifying for a mortgage, and mortgage lenders often require you to have homeowners insurance to get hazard coverage.
