November 19, 2020

When a natural event, such as a forest fire, hurricane, or severe hail causes damage to your home, you need hazard insurance. Hazard insurance provides coverage for homeowners against specific weather events. Every hazard policy includes some differences, and you might need different weather events included depending on where you live. 

Learn everything you need to know about hazard insurance policies, what it covers, and whether or not you need it in your homeowner’s policy. Find out the extent to which hazard coverage can help you with damages incurred by a weather event. And, learn what to look for when shopping for a hazard policy provider. 

What is Hazard Insurance? The Total Homeowners Guide – 2020

Hazard insurance is commonly confused with catastrophe insurance – but they are not the same. To begin with, catastrophe insurance does not exist within your homeowner’s policy, but hazard insurance does. Catastrophe insurance can cover some of the same things, but it is a separate and free-standing insurance policy. 

Your homeowner’s insurance policy includes hazard insurance to cover the costs of damages incurred to the structure of your property during a natural event. Another common misconception – hazard insurance covers natural events, like hurricanes, but does not cover flood damage. Flood damage also exists under a separate insurance policy.  

What Does Hazard Insurance Cover in My Homeowners Policy?

Damages and loss to the structure of your home, other structures on your property, and personal items are covered under your hazard insurance. The exact instances that your policy covers, and for how much is different for every insurance provider – as well as for each policy. But, no matter your homeowner’s policy, it includes hazard insurance of one sort or another. 

Without the inclusion of hazard insurance, homeowners would be left with the bill for any damage incurred by the weather, like strong winds, hail, and tornados. Even if your entire home gets blown down by a hurricane, hazard insurance works to replace and repair the structure, property, and appliances in your home. In general, most hazard insurance policies cover the cost of damage that comes from…

  • Windstorms
  • Hail
  • Fire and Smoke
  • Lighting
  • Aircraft or Vehicles
  • Theft or Vandalism
  • Civil Unrest and Riots
  • Explosions
  • Volcanos
  • Falling Objects
  • Electrical Current
  • Freezing, Snow, Ice, and Sleet

The natural events which are not covered by most hazard insurance policies include…

  • Earthquakes
  • Mudslides
  • Flooding
  • Landslides

What to Look for When Choosing a Hazard Insurance Policy

You can get extra insurance coverage on top of your standard hazard insurance to cover damages related to earthquakes, mudslides, flooding, and landslides. The most important part of choosing a policy is to make sure it covers the most likely causes of damage where you live. For example, if you live in the midwest, flood insurance might not be necessary, but if you live in Florida it is crucial. 

If you live in an area that resides in a floodplain, or that experiences more landslides than the average area, consider getting supplemental insurance. California residents have to constantly worry about earthquakes, which are not covered under homeowners and hazard insurance. Look for a policy that gives comprehensive coverage for the natural disasters you experience in your area, and take out as much coverage as you need to repair your home in the event of destruction. 

The hazards that are outlined in your homeowner’s insurance clearly state what natural events are covered by your hazard insurance. Still, have questions? Talk to an insurance advisor for a free consultation on the best hazard insurance provider for your area.