Hazard insurance and homeowners insurance are often mistaken for the same thing due to the similarities they share. While standard homeowners insurance policies include hazard coverage, standalone hazard insurance serves a different purpose.
How do you know if you need hazard insurance? Here is a guide to help you understand the basics:
Hazard insurance can protect you financially from damage caused by hazards like fire, lighting, wind and other natural events. While homeowners insurance includes protection from a broad range of hazards, certain specific events are excluded.
In certain areas where specific hazards like tornadoes or earthquakes are common, you may be required to get a separate hazard insurance policy. This combined with your regular homeowners insurance coverage means you’re prepared for anything.
Another key point of comparison of what these two types of insurance will pay to replace. Hazard insurance typically refers to coverage for the structure of your home, including the roof and foundation. Homeowners insurance, however, includes coverage for your personal belongings and furnishings.
Whether you should have additional hazard insurance largely depends on where you live. In regions prone to flooding, for example, your mortgage lender might require you to get a flood insurance policy before approving you for a loan.
Even if not required, having hazard insurance coverage can give you peace of mind. If you have an additional hazard policy, you’ll know you have financial coverage if your home and belongings are damaged in an extreme weather event.
By comparing the hazard insurance cost with the potential cost of replacement and repairs, you can determine whether it makes sense to add it into your budget. Consult your insurance company to find out what options you have and whether a hazard insurance policy is right for you.
For over 10 years, I have been following my passion of helping people find their dream homes and sell them when the time is right. First time home buyers, growing families, empty nesters looking to downsize. I guide my clients every step of the way, from initial consultation through final closing. By bringing an experienced eye and a fresh approach to every situation, I work diligently with each client to smooth the process and make it as stress-free as possible.
Fair representation, respect and integrity. Clear communication and detailed coordination. A commitment to putting my clients' needs first. These are the practices and values my clients expect and enjoy.
I also work with a wide network of trusted experts in financing, legal assistance, home inspections, evaluation and interior design. Everyone has the same high expectation of providing the utmost service through close communication and coordination to get our client to the end goal of selling or moving into their dream home!
