What Is Home Hazard Insurance?
Home hazard insurance is a part of your homeowner's policy that covers structural damage to your home caused by physical perils such as fires and hailstorms.
Written by Sean Boehme
Reviewed by Melanie Reiff
Home hazard insurance is part of your
homeowner’s policy
and covers damage to the physical structure of your house due to fire, hail, and other incidents.Buying a new house can be as stressful as it is exciting. Generally, it involves taking out a mortgage—and your lender will likely require you to have hazard insurance before you’re approved.
To help you understand what this type of policy covers, how much it costs, and how to find an affordable rate, the insurance super app
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What is hazard insurance?
Also known as “dwelling coverage,” hazard insurance is the portion of your homeowner’s policy that covers structural damage to your home. It also often covers damage to other structures on your property, such as garages or swimming pools.
The perils covered by hazard insurance can vary from weather events—like hail or a windstorm—to accidents, such as someone crashing their car into your home.
The specifics of what “perils” your hazard insurance may cover can vary from one insurance company to another, but one thing they tend to have in common is that there is no way the homeowner could prevent them.
This means problems like wear and tear or damage caused by the homeowner are not covered.
How does hazard insurance differ from homeowner’s insurance?
While hazard insurance is great for protecting you from surprise damage to your house, its coverage is limited to damage to the structure of your house itself. That means it’s not going to cover
the loss of personal items
or any accidents that occur inside your home.That said, a standard homeowners policy will include hazard insurance in a package with personal property and personal liability coverage, so you can expect to have all your bases covered.
What will hazard insurance cover?
While hazard insurance plans can vary, there are a few risks covered in most plans, including:
- Fires
- Lightning
- Damage from a vehicle
- Hail
- Vandalism and Riots
- Fallen Trees
Note that
flood insurance
is generally not included in a standard dwelling coverage plan, even if it is similar to other hazards. You should make sure you have a separate flood insurance plan instead.If you are looking for more comprehensive hazard insurance, carriers usually offer optional plans that you can consider. With a Guaranteed Replacement Cost plan, you’ll receive the entirety of the funds needed to rebuild your home if needed.
How much does hazard insurance cost?
Since hazard insurance is a part of your homeowner's policy, you never need to purchase it separately. That’s one less thing you have to worry about!
However, it’s difficult to answer how much your homeowner’s policy will cost. The cost of your homeowner's policy can vary based on different factors, including your location, the price to rebuild your home, and the age of your house.
Location is especially important as, depending on your state and your carrier, you may be required to pay extra for certain coverage.
For example, fire coverage may be standard in most states, but you could run into an additional fee if your home is in a state that is more likely to deal with wildfires, such as California.
While the average cost of homeowners insurance hovers just over $1000 per year, you can expect to pay more if you opt for more robust dwelling coverage plans, such as one that also includes flood insurance.
Key Takeaway: The price of your hazard insurance is going to depend on your home’s location and condition.
How to find the best home insurance
If you’re having trouble finding the right hazard insurance plan for you, or if you already have a homeowner’s policy but are worried you’re overspending,
Jerry
can help.Jerry is a licensed insurance broker that can help you to find affordable quotes fast. It takes seconds to sign up and gain access to a group of experienced agents who will take care of all the paperwork for you.
Download the #1 rated Jerry super app to get started.
“This was my first time getting insurance, so I was really scared. ButJerrymade things much easier than expected! I’m so glad I found the app.” —Umar J.
MORE: How to Settle Into a New House
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FAQs
What’s the difference between hazard insurance and homeowner’s insurance?
Hazard insurance strictly covers physical damage to either your house or other structural parts of your property (such as a garage). While it may cover damage caused to the home by burglars during a theft, it isn’t going to help out with the personal items you lost.
Your general homeowner's policy, however, will include both liability and personal coverage, meaning you’ll be compensated in the event something is stolen or an accident happens on your property.
Do I have to pay hazard insurance on my mortgage?
Lenders will require you to have hazard insurance to take out a mortgage.
Since hazard insurance is included in your homeowner's policy, that’s all you’ll need to satisfy your lender. You’ll have to continue paying for your homeowner's policy throughout your mortgage.
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