Hazard insurance is a type of insurance that protects a property owner against damage caused by natural disasters or hazards. It is usually a requirement when qualifying for a mortgage, and mortgage lenders often use the term "hazard insurance" to refer to coverage for the structure of your home. Hazard insurance is not the same thing as homeowners insurance, but it is part of a homeowners insurance policy. Here are some key points to know about hazard insurance:
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Coverage: Hazard insurance generally covers disasters such as fire, wind, hail, lightning, snow, or rainstorms. It can pay to repair or rebuild your home after a disaster.
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Requirement: Your lender will likely require you to have hazard insurance to get a mortgage.
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Cost: The cost of hazard insurance varies depending on the location of your home and the level of coverage you need.
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Difference from homeowners insurance: Homeowners insurance covers more than just the structure of your home, including personal property and liability coverage. Hazard insurance is a subsection of homeowners insurance that specifically covers damage to the physical structure of your house.
In summary, hazard insurance is a type of insurance that protects your home from natural disasters or hazards, and it is usually required when qualifying for a mortgage. It is not the same thing as homeowners insurance, but it is part of a homeowners insurance policy that covers the structure of your home.
