Hazard Insurance
Author: Terri Ewing
Published: August 14, 2008
Hazard Insurance Defined
Hazard insurance is another name for homeowner or property insurance. The lender won’t lend money on a property that is not properly insured in case of fire or other hazards. The lender has to see the dwelling coverage equal to or more than the loan amount.
The lender will be listed on the hazard insurance documents as the mortgagee. Most of the time, the insurance premium payment is included in your mortgage payment every month. If you chose to pay your insurance and taxes on your own, the lender checks to make sure that premium payment is made. If you don’t make it and the policy is cancelled, the lender will place their own insurance on the property and increase your mortgage payment every month by the premium.
Author: Terri Ewing
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