What homeowners should know about hazard insurance

by Jan Kennemer 08/11/2024

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 vs. homeowners insurance

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.

How to know if you need hazard insurance

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.

About the Author
Author

Jan Kennemer

Jan will show you how you can live close to Washington, DC – by public transit and/or highway – and still enjoy all the many amenities and friendliness of a quiet community. Jan is a life-long resident of Arlington, Va. So, she is very familiar with northern Virginia …Arlington, Falls Church, Alexandria and close-in Fairfax. She knows where to find those little out-of the-way places where you will still get excellent value and a home that meets your needs. As a Realtor® for over 20 years, Jan has developed a customized system for marketing and selling properties which includes the latest technologies combined with tried and true practices. She has received special training in working with first time buyers, repeat buyers and seniors. She is a certified VHDA trainer and is certified as a Senior Real Estate Specialist (SRES©). Jan is also a certified e-Pro. She gets results you want – the best price in the shortest time. Jan is dedicated to helping clients satisfy their needs and wants while providing them with a strong investment for the future. She is readily available to provide explanations and information. She won’t push you into making an uncomfortable choice. Jan helps you to fully understand the transaction, so that you can always make an informed decision based on facts and figures.