Definition of Hazard insurance:
Colloquially, hazard insurance is often considered synonymous with catastrophe insurance. Although both deal with coverage for large-scale, natural disasters—aka "acts of God"—they are technically different. WithIn in the insurance industry, hazard insurance refers to a portion of a general homeowners insurance policy that protects the structure of the home; catastrophe insurance usually refers to a separate, freestanding policy that covers specific types of disaster, including man-made ones.
Also known as homeowners insurance or fire insurance. A policy that provides coverage for damage from forces such as fire and wind.
Hazard insurance is coverage that protects a property owner against damage caused by fires, severe storms, hail/sleet, or other natural events. As long as the specific weather event is covered within the policy, the property owner will receive compensation to cover the cost of any damage incurred. Typically, the property owner will be required to pay for a year's worth of premiums at the time of purchasing the policy, but this practice will depend on the exact details of the policy.
How to use Hazard insurance in a sentence?
- Hazard insurance protects a property owner against damage caused by fires, severe storms, and other natural events.
- In areas prone to certain risks, such as floods or landslides, homeowners often opt to take out separate or additional hazard insurance to cover specific contingencies.
- Hazard insurance usually refers to a section of a general homeowners insurance policy that protects the structure of the home.
- Mortgage lenders often require you to have homeowners insurance to get hazard coverage.
Meaning of Hazard insurance & Hazard insurance Definition