Hazard Insurance Mortgage : More about Hazard Insurance


In other to get a mortgage loan for your new home, you need to have some hazard insurance Incorporated in your homeowners insurance coverage. Hazard Insurance is part of a homeowners insurance policy – it is not a separate coverage type.

Hazard Insurance is essential in keeping you, your family, and your beloved house safe from any hazards that may affect your home. In this article, we answer specific questions about mortgage insurance, hazard insurance, and what they cover.


What is Mortgage Insurance?

Mortgage insurance is also known as mortgage guarantee and home loan insurance. It is an insurance policy that compensates lenders or investors due to the default of a mortgage loan. Mortgage insurance can either be public or private depending upon the insurer. The policy is also known as a Mortgage Indemnity Guarantee (MIG), particularly in the UK.

What is Hazard Insurance?

Hazard Insurance generally refers to coverage for the structure of your home only. All other kinds of damage will be covered by other coverage within the homeowners insurance policy. Please note that Hazard Insurance doesn’t cover the injuries caused by you on yourself or the one caused by your friends on you, this kind of damages will be covered by liability coverage. Hazard Insurance only covers natural damages in which the house was affected. The reason why hazard Insurance is essential is that your mortgage loan provider will want to ensure that your home will be covered by hazard Insurance so that whatever happens to the house in the long run they too can get their money back.

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What does Hazard Insurance Cover?

Hazard Insurance covers the following ;

  • Fire damage
  • Hail
  • Lighting damage
  • Theft
  • Vandalism
  • Fallen trees
  • Vehicles that run into your home
  • Explosion

Any many more relating to the the direct damage of your house. But please note that Hazard Insurance doesn’t cover damage from flooding you will need to purchase a separate flood insurance policy for that.


How much is Hazard Insurance?

Hazard Insurance doesn’t have a specific fee, it depends on the following ;

  • The value of your home
  • Your policy limit
  • Your deductible amount

Or even sometimes the company you are insuring with. Do well to insure your home with hazard insurance so you can be sure that any damage caused to your home is fully covered.

Merits of Hazard Insurance

It protects your home and other properties

The main aim of hazard insurance is to protect your home and other physical properties in it or attached to it. When your house gets damaged, hazard Insurance covers all damages affected to the house, you could get everything lost during the damage including personal belongings like your clothes, furnitures and electronics.

It’s easy to get started

One of the major advantages of Hazard Insurance is that it’s very easy to start. You don’t need much to start up a hazard Insurance policy. Installment plans are now even Incorporated in some Hazard policy. So you see, you need to insure your home against hazard Insurance to keep safe when hazards comes.

Financial protection

Hazard Insurance also protects you financially. When your home gets damaged,  hazard Insurance provides you with finances that would enable you to replace all that was damaged and get back on your feet.

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Liability coverage


Having hazard Insurance active protects you from liability. Yes hazard Insurance gives you a liability coverage should anyone get injured in your property, hazard insurance will cover all payments of any medical treatment that the individual will receive.

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