Hazard Insurance Overview
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Hazard insurance covers replacement costs for damages caused by fire, wind or disaster that might affect thevalue of the home. Hazard insurance also includes liability and theft coverage.
Hazard Insurance
A hazard insurance policy is a package policy that combines more than one type of insurance coverage in a single policy.
There are four types of coverages that are contained in the homeowners policy:
The hazard insurance policy protects you from damage or loss to your home or the property in it.
Flood or Quake Insurance
Additional hazard insurance policy coverage that is required for homes located in a designated hazard zone as established by the Federal Emergency Management Agency (FEMA).
Remember that flood insurance and earthquake damage are not covered by a standard hazard insurance policy. If you buy a house in a flood-prone area, you’ll have to pay for a flood insurance policy that costs an average of $400 a year. The Federal Emergency Management Agency provides useful information on flood insurance on its Web site at www.fema.gov.
A separate earthquake policy is available from most insurance companies. The cost of the coverage will depend on the likelihood of earthquakes in your area.
Hope this hazard insurance policy overview has helped you understand what is needed when buying a home.
Good Luck!
Author: The Mortgage Insider
Date: January 19, 2008
Tags by Post Hazard Insurance, Mortgage Insurance, Types of Insurance
Technorati Hazard Insurance, Mortgage Insurance, Types of Insurance
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Gene,
Hazard insurance and homeowners insurance are just different words for the same thing…coverage for when the house burns down or blows away…lol!
The confusion in the mortgage industry comes in with title insurance. See there is a title insurance policy called a “Homeowners Policy”.
So for that reason mortgage folks always refer to ‘burn down blow away’ insurance as hazard insurance.
Hope that explains it…
RKB
how does hazard insurance differ from a homeowners policy