We are independent & ad-supported. We may earn a commission for purchases made through our links.

Advertiser Disclosure

Our website is an independent, advertising-supported platform. We provide our content free of charge to our readers, and to keep it that way, we rely on revenue generated through advertisements and affiliate partnerships. This means that when you click on certain links on our site and make a purchase, we may earn a commission. Learn more.

How We Make Money

We sustain our operations through affiliate commissions and advertising. If you click on an affiliate link and make a purchase, we may receive a commission from the merchant at no additional cost to you. We also display advertisements on our website, which help generate revenue to support our work and keep our content free for readers. Our editorial team operates independently from our advertising and affiliate partnerships to ensure that our content remains unbiased and focused on providing you with the best information and recommendations based on thorough research and honest evaluations. To remain transparent, we’ve provided a list of our current affiliate partners here.

What is Hazard Insurance?

Michael Pollick
By
Updated May 17, 2024
Our promise to you
WiseGeek is dedicated to creating trustworthy, high-quality content that always prioritizes transparency, integrity, and inclusivity above all else. Our ensure that our content creation and review process includes rigorous fact-checking, evidence-based, and continual updates to ensure accuracy and reliability.

Our Promise to you

Founded in 2002, our company has been a trusted resource for readers seeking informative and engaging content. Our dedication to quality remains unwavering—and will never change. We follow a strict editorial policy, ensuring that our content is authored by highly qualified professionals and edited by subject matter experts. This guarantees that everything we publish is objective, accurate, and trustworthy.

Over the years, we've refined our approach to cover a wide range of topics, providing readers with reliable and practical advice to enhance their knowledge and skills. That's why millions of readers turn to us each year. Join us in celebrating the joy of learning, guided by standards you can trust.

Editorial Standards

At WiseGeek, we are committed to creating content that you can trust. Our editorial process is designed to ensure that every piece of content we publish is accurate, reliable, and informative.

Our team of experienced writers and editors follows a strict set of guidelines to ensure the highest quality content. We conduct thorough research, fact-check all information, and rely on credible sources to back up our claims. Our content is reviewed by subject matter experts to ensure accuracy and clarity.

We believe in transparency and maintain editorial independence from our advertisers. Our team does not receive direct compensation from advertisers, allowing us to create unbiased content that prioritizes your interests.

Hazard insurance, also called homeowner's or property insurance, provides coverage for specific natural hazards, such as fire, wind, earthquakes and vandalism. Many homeowners purchase a "comprehensive" form of insurance first, which may include most common damages, but then seek additional coverage for specific dangers. Those who live in flood plains may buy insurance for water damage, for example, while homeowners in California may add earthquake insurance.

Since there may be a definable difference between homeowner's insurance and hazard insurance, it pays to ask the insurance broker about coverage before agreeing to the contract. Some comprehensive policies already provide coverage for certain hazards, so additional insurance may not be strictly necessary. Others may not fully cover hazards specific to the area, such as damage caused by a breeched dam or vandalism during construction. Truly comprehensive home insurance should cover both liability and physical damages. A hazard policy is usually geared towards physical property damage, rather than owner liability for accidents on the premises.

During the closing of a property sale, the buyer is almost always required to obtain some form of hazard insurance. The terminology for this coverage may change to property insurance or comprehensive homeowner's insurance, but it all means the same thing to the closing attorneys and lenders. Buyers are strongly encouraged to buy at least enough insurance to cover the cost of the mortgage, which will provide enough protection to restore the property if it burns to the ground the day after the sale is complete.

Premiums for this type of insurance are generally calculated on the appraised value of the property, the age of the building, construction methods and known natural hazards in the area. Insurance agencies may offer additional hazard policies such as flood, earthquake and hurricane coverage, but homeowners may have to weigh the benefits against the higher premiums. Some policies may sound frivolous, but the damage caused by a rare earthquake in North Carolina, for example, could be substantial. Hurricane insurance in Florida may sound automatic, but some homeowners may save money on premiums by not adding it to a comprehensive policy, as the damage may be covered without the need for extra coverage.

WiseGeek is dedicated to providing accurate and trustworthy information. We carefully select reputable sources and employ a rigorous fact-checking process to maintain the highest standards. To learn more about our commitment to accuracy, read our editorial process.
Michael Pollick
By Michael Pollick , Writer
As a frequent contributor to WiseGeek, Michael Pollick uses his passion for research and writing to cover a wide range of topics. His curiosity drives him to study subjects in-depth, resulting in informative and engaging articles. Prior to becoming a professional writer, Michael honed his skills as an English tutor, poet, voice-over artist, and DJ.

Discussion Comments

By anon42316 — On Aug 20, 2009

does hazard insurance cover leaks, water damage and mildrew?

By colsanders — On Feb 04, 2008

can i make claims on hazard insurance?

Michael Pollick

Michael Pollick

Writer

As a frequent contributor to WiseGeek, Michael Pollick uses his passion for research and writing to cover a wide range...
Learn more
WiseGeek, in your inbox

Our latest articles, guides, and more, delivered daily.

WiseGeek, in your inbox

Our latest articles, guides, and more, delivered daily.