Hazard Insurance

Definition of "Hazard insurance"

Written by

Maria Lourdes Perez

Keller Williams NYC - Queens/Bayside

There’s a lot of confusion regarding the hazard insurance definition. Many people think it’s a synonym for homeowners insurance but they’re wrong. Hazard insurance is actually part of the homeowner’s insurance policy.

Hazard insurance refers to one of the coverages within homeowner’s insurance; the protection against perils like fire, severe storms, wind hails and other natural events to the dwelling. Whatever happens to the structure is considered hazard insurance. That is; the other parts covered by the policy – like liability insurance and personal property insurance – are not considered hazard insurance.

But it is more than that. Flood insurance and Earthquake insurance, for instance, are not typically included in a homeowner’s insurance policy and are considered hazard insurance. So it’s fair to say that hazard insurance is a definition of a type of peril to your home that can be insured, and that peril is natural hazards from the outside world to the structure of your property.

While it is in the owner’s best interest to preserve his interest in the house with this type of insurance, it’s the mortgage companies who require this policy most of the times. Here’s why: an accident inside the house, for instance, will hurt the homeowner financially and, in the long run, that’s bad for the lender, but not immediately. However, a hazard to the structure is immediately bad because it devalues the home. If the owner doesn’t fix it and later on defaults and the house goes on to foreclosure, the lender will now potentially have a house that’s worth less than what he borrowed –making the lender unable to recuperate the investment.

Need help as a:

I am a buyer

I am a realtor

I'm interested to:

Buy

Sell

Rent

I work in:

Residential

Commercial

Rental

Reach out to the local professionals for help

Where?

Name

Phone

Email

 

I agree to receive FREE real estate advice.

Agents, get listed in your area. Sign up Now!

Here's what you'll get:

1. Full zipcodes coverage for the city of your choice for 3 months

2. The ability to reach a wider audience

3. No annual contract and no hidden fees

4. Live customer support/No robo calls

$75 - Any City - 3 Months Coverage

Where?

First Name

Last Name

Cellphone

Email

Credit Card Number

Credit Exp Date*

01 02 03 04 05 06 07 08 09 10 11 12 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043

CCV*

Billing Zip code*

 

Please wait ...

I agree to receive FREE real estate advice

I agree with Terms & Conditions and Section 5-5.9.

Real Estate Advice:

We understand there are a lot of insurances out there and it feels like it’s draining your money away. But there’s nothing more dangerous than living without coverage and 10 out of 10 real estate agents will tell you this one is the most important one. After all, if you don’t protect your asset, in the case of an accident it will literally make you lose a lot of money.