Hazard insurance is one of the protections included in your homeowners insurance policy.
It covers structural damage to your home caused by certain natural disasters, also referred to as hazards or perils. It is identical to the dwelling coverage on your policy.
Storm damage, fire damage, and vehicle accidents are frequently included as covered risks. However, earthquakes and flooding are typically excluded.
Although the terms “hazard insurance” and “homeowners insurance” are sometimes used interchangeably, they are technically distinct.
Hazard insurance is a subset of homeowners insurance, which covers a wide range of things (personal property, other structures on your property, certain liabilities, and more).
However, when a mortgage lender suggests that you purchase homeowners insurance, they are referring to hazard insurance. Hazard coverage is typically not available for purchase on its own.
