With so many apparent similarities between the two, hazard insurance and homeowners insurance are often mistaken for the same thing. Standard homeowners insurance policies include hazard coverage, but what about standalone hazard insurance?
Here is a basic comparison of hazard insurance and homeowners insurance to help clarify the differences and similarities:
Hazard insurance
Hazard insurance protects you financially if your property is damaged by a specific natural disaster. Some examples of hazard policies include tornado insurance, earthquake insurance and flood insurance.
Hazard insurance is typically required in certain areas where hazards are not otherwise covered by the standard homeowners insurance policy.
Homeowners insurance
Homeowners insurance includes basic hazard coverage for damage to your home from extreme weather, theft and other perils. It specifically includes dwelling coverage, which protects the physical structure of your home, and personal property coverage, which protects your belongings.
Homeowners insurance protects the contents of your home as well as the home itself. This is a major difference between homeowners and hazard insurance. Generally, home insurance covers a broader range of hazards, but won’t be able to help you if certain specific hazards, like tornadoes, occur.
Do you need hazard insurance?
Whether you require additional hazard insurance is dependent on your personal preference and where you live. In regions where tornadoes are common, for example, your mortgage lender might require you to get a tornado insurance policy before approving you for a loan.
Even if not required, having hazard insurance coverage can give you peace of mind. If you have an additional hazard policy, you’ll know you have financial coverage if your home and belongings are damaged by something otherwise excluded from your home insurance.
About the Author
Wendy Wiegand
As a premier real estate agent in Carlsbad, I’m here to provide you with all the resources and information you need to buy or sell real estate. I work with buyers and sellers in Carlsbad, Encinitas, Oceanside, San Marcos, Vista and the surrounding areas and I’ve had extensive training in the latest real estate marketing strategies. I’m confident that I can offer you knowledge and tools most other agents can’t.
I believe in service, both to my clients and our community. When working with clients, you can be assured I am focused on providing the most comprehensive and dedicated effort so that you can achieve the best results possible when buying or selling real estate. I am also deeply involved in serving our community, as you and I all call it home. I have been a member of Rotary since 2003, have been an active member of the Carlsbad Chamber of Commerce since 2006, and serve on the board of the Agua Hedionda Lagoon Foundation. Perhaps my even deeper service to my clients and our community is Wiegand Realty’s participation in Business for a Cause.
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Thanks and I look forward to assisting in all of your real estate needs!
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