Hazard Insurance FAQs

Hazard insurance needed for a burning home.When unforeseen natural disasters and events wreak havoc on your home, hazard insurance may help repair the house and recuperate other losses. That way, you can help your family find peace and safety once again.

  • What is Hazard Insurance?

Specific natural hazards, which can potentially damage or destroy your home, are covered by varying forms of hazard insurance. A few of these include fire, earthquakes, flooding, wind, and vandalism. Depending on the location of your home, some of these will be more relevant than others. For instance, a homeowner in Kansas may need tornado insurance while a homeowner in Florida might opt for hurricane coverage. Of course, you could choose to pay for a hazard insurance plan that includes every natural hazard known to man, but it probably will not be financially practical.

  • How is Hazard Insurance Different From Homeowner’s Insurance?

Hazard insurance and homeowner’s insurance are often used synonymously in conversation. However, depending on your insurance broker, they may be quite different. If your broker uses the term “comprehensive” to describe your homeowner’s insurance, you should check to make sure that it covers the specific hazards common to your location or that you are concerned about prior to signing a contract. In addition, truly comprehensive insurance should cover both liability and physical damages while hazard insurance generally covers only physical property damage.

  • When Should I Get Hazard Insurance?

During a property’s closing sale, the buyer is typically required to obtain hazard insurance of some kind, the terminology of which may change later to property or comprehensive homeowner’s insurance. The name may not matter, but the details do! Be sure to read thoroughly and understand what you are signing off on prior to agreeing.

  • How Much Should my Hazard Insurance Cover and What Will it Cost?

It’s strongly encouraged to buy enough hazard insurance to cover (at least) the cost of the mortgage. That way, if something happens immediately after the sale, the buyer is protected enough to cover the full restoration of the home. Costs are calculated from the estimated value of the property, age, construction, and known hazards in the area.

Securing hazard insurance is just one more step in the buying process. Much like getting your home inspected, hazard insurance can give you peace of mind that your family and investment will be safe. If you are moving somewhere new and need any inspection services (foundation, termites, plumbing, radon testing. etc.) simply Inspect-It 1st!

If you aren’t currently buying or selling but think you might want an inspection done, Inspect-It 1st provides great resources to get you started.

Inspect-It 1st is a home inspection franchise with certified home inspectors from coast-to-coast. Our home inspection services help buyers and sellers make smart property investment decisions. “Before you Buy or Sell, Inspect-It 1st!”  Privacy Policy