Are hazard insurance and homeowner’s insurance the same thing? Well…not exactly. Hazard insurance protects the homeowner against any structural damage that is caused by natural disasters. However, homeowner’s insurance is a financial protection against theft and other damages to your home and belongings.
What does hazard insurance cover?
Hazard insurance covers the damages caused by natural disasters. It typically only covers the actual structure of your home, not any of the personal items inside. That would fall on the homeowner’s insurance. Some of the most common dangers that cause damage that are covered by hazard insurance are:
Hazard insurance will only cover the cost to repair or rebuild your home. If you have personal damages as a result of the disaster, that would require homeowner’s insurance.
What are the main differences between hazard insurance and homeowner insurance?
Homeowner’s insurance protects you financially from different forms of damages. These protections are specified in your policy. Additionally, homeowner’s insurance will cover you in the case of theft. If someone is injured at your house and any charges are incurred as a result of legal action, homeowner’s insurance will also cover you. Finally, homeowner’s insurance will cover any damages in the case of:
An insurance agent will help you design a policy to cover the cost of your personal property, liability, and other basic coverages. Additionally, a policy will also include protection against hazards. However, many mortgage lenders will require you to have supplemental hazard insurance based on where you live. For example, if you live in the Midwest, your lender will most likely have you purchase tornado coverage for your home.
What’s best for you?
Before purchasing a home, talk to an insurance agent who you trust. They will help you get the right insurance policy to cover you in case of emergency.
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