Hazard insurance, homeowner’s insurance, and property insurance are all names for the same type of insurance coverage. Purchasing of a policy of this type will protect your home and contents from several different perils that can happen to a home at any given time.
The lead coverage on a hazard policy is fire and lightening coverage. If you purchase a fire policy in some states, you can sign a waiver excluding windstorm, hurricane, and hail coverage to save money, but you are risking being uncovered in the event of a major storm. Not living near the coast does not justify excluding coverage for windstorm, hurricane, and hail. Tornado, high winds, and hail storms can happen anywhere, and unless you have this type of coverage on a policy you could be in trouble in the event of that type of loss. Fire policies are cheaper than homeowner policies and are usually purchased to cover rental property rather than a primary home. Normally renters will have to purchase a policy of their own to cover their personal property and to protect them for liability.
In order to be fully protected homeowners need comprehensive coverage for both the dwelling and the contents. The amount of hazard insurance purchased is determined by several factors that include but are not limited to: construction type, roof type, square footage, age, location, and whether or not it’s on a slab. There are many other specifics that can be included in to raise the coverage amount in order to fully protect a home and contents for replacement cost rather than actual cash value. A normal homeowner policy covers the dwelling and contents for the hazards of fire, lightening, windstorm, hurricane, hail, theft, liability and in some area’s accidental discharge of water. Separate endorsements covering other items specifically can be purchased for additional premium such as computer equipment, valuable items, guns, etc. There is no coverage under a hazard policy for anything that can be covered under a policy of its own such as cars, boats, motorcycles, and ATV’s. Damage caused by rising water is not a covered peril because a separate Flood policy can be purchased to cover that.
As time passes and insurance companies are paying out for different types of hazards on a steady basis they sometimes come along and change their guidelines. These guideline changes can take away a coverage or allow the company to charge more for a specific coverage that was at one time included under the basic premium. Different states have different rules concerning policy coverage, and speaking with an agent in your area is where you will always get the most concise, up to date information for your particular area and needs.