Why You Must Have Mortgage Hazard Insurance

Are you buying a new home? You must have a minimum amount of mortgage hazard insurance included with your homeowners insurance policy in order to get a mortgage loan on your new home. Hazard insurance is not a separate coverage type; it is typically included in a homeowners insurance policy and is critical for the safety of you, your family, and your home.

What Is Hazard Insurance and How Does It Work?

Hazard insurance is a form of home insurance that only covers the structure of your home. Other types of loss would be protected by the homeowners insurance policy’s other coverages. Hazard insurance does not always apply to the policy that covers you from injuries sustained by you or your visitors as a result of an accident. Liability coverage can cover these injuries.

What Is Covered by Hazard Insurance?

While mortgage hazard insurance doesn’t typically cover floods (you may need a separate policy for that), it does cover many events, such as the following:

  • Fallen trees
  • Lightning
  • Theft
  • Explosions
  • Fire damage
  • Hail
  • Vandalism
  • Vehicles that run into your home

Mortgage hazard insurance can bring much-needed peace of mind to owning a home. Making sure that this is included in your homeowners policy will go a long way to reassuring you that your home is protected from unforeseen events.