Question:

Hazard Insurance Definition

Answer:

Hazard insurance is often called property insurance or homeowners insurance. It is a policy against damage and loss on the property caused by specific man-made or natural events, and against liability of the homeowner in case someone suffers injury on the owner's premises.

When talking about hazard insurance, it is often meant to be a comprehensive insurance policy. Sometimes, a homeowners insurance will be considered comprehensive and a hazard insurance will signify additional insurance coverage against common natural disasters for the area. For example, you may need additional flood hazard policy in Florida and earthquake policy in California.

Lenders require that borrowers obtain hazard insurance when applying for a mortgage. To reduce premiums of the hazard insurance, borrowers may purchase greater deductible.

Recommended helpful present and future homeowners links:
Why: Refinance to a fixed rate loan while mortgage rates are still low.
Link:
Why: Because FHA loans are insured by the US Federal Government they have very competitive interest rates and are easier to qualify.
Link:
Why: Know and protect your credit report and score.
Link: See All 3 National Credit Scores & 3 Reports Instantly, Online & Free
Link this QnA Print del.icio.us Digg
Was this Mortgage QnA helpful?
Not at all
  • Currently 3.1/5 Stars
  • 1
  • 2
  • 3
  • 4
  • 5
 Definitely
Add to this Answer

Mortgage QnA is not a common forum. We have special rules:

  • Post no questions here. To ask a question, click the Ask a Question link
  • We will not publish answers that include any form of advertising
  • Add your answer only if it will contrubute to the quality of this Mortgage QnA and help future readers
If you have trouble reading the code, click on the code itself to generate a new random code. Verification Code Above:
Bookmark and share this QnA:

Common misspellings: mortage and morgage