To get a mortgage loan for a new house, you must have a specific quantity of hazard insurance included within your coverage for homeowners insurance. Hazard insurance is a part of a homeowners policy – it isn’t a separate type of coverage. Hazard insurance is key to keeping you, your loved ones, and your home safe.

Hazard insurance: What is it?

Generally, hazard insurance refers to coverage only for your home’s structure. Other types of damage are covered by additional coverages in your homeowners policy. Hazard insurance does not typically refer to the coverage which safeguards you for injuries that are incurred by you or your visitors after an accident that might be covered by liability coverage.

The reason that ‘hazard insurance’ is a common phrase is really because of lenders. Your mortgage loan company might require hazard insurance at a minimum before they’ll issue you a loan, because that’s the only part of the homeowners policy that is directly associated with the home structure itself. It might create a misconception that hazard coverage may be separately purchased from homeowners insurance, which isn’t accurate. If the lender specified that you require dwelling or hazard coverage, know that usually investing in a homeowners policy will satisfy these requirements.

Hazard insurance: What does it cover?

Hazard insurance might cover “hazards” like:

● Explosions
● Vehicle which run into your house
● Fallen trees
● Vandalism
● Theft
● Damage
● Lightning
● Hail
● Fire Damage

Hazard insurance: What doesn’t it cover?

Typically, hazard insurance does not cover damage from flooding. You’ll have to invest in a separate flood policy that covers your house.

Hazard insurance: How much is it?

How much you decide to pay for homeowners insurance depends upon a number of factors, which includes your home’s value, your deductible amount, and your policy limits

For maximum safeguarding against the unpredictable, a dependable homeowners insurance policy is your best bet. With Steely and Smith’s custom-made policies, you also can add optional coverages such as personal umbrella insurance and flood insurance.

For more information on our homeowners insurance services please feel free to get in touch with Steely and Smith Insurance in Doylestown, PA at (215) 345-9410 right away!