Hazard Insurance
Coverage that protects your home against specific perils or hazards such as fire, wind, hail, or vandalism.
Detailed Explanation
While often used interchangeably with homeowners insurance, hazard insurance specifically refers to the portion that covers physical damage to the structure. Mortgage lenders require this coverage to protect their investment in the property.
Practical Example
Before approving Maria's home loan, her bank required proof of hazard insurance that would fully cover the replacement cost of the house if it were damaged by fire or other covered perils.
Frequently Asked Questions
Related Terms
Need Insurance Coverage?
Request quotes from top insurance providers and find the best coverage for your needs.
Get Free Quotes