What is Hazard Insurance?

Hazard Insurance insures against losses associated with damages to property due to natural phenomena such as fire, flooding, severe storms, earthquakes and the like. Based on policy, the property owner will receive compensation in the event of damages to covered properties by natural disasters. Generally, the property owner is required to pay insurance premiums – mostly bi-annually or annually depending on the terms of the policy.

How Does Hazard Insurance Work?

Generally, the owners policy does not cover all natural events which might result in damage to property. However, a number of contingency plans are put in place to ensure damage is catered for or might be placed into separate insurance policies. High risk locations, such as Florida, require that its home or property owners apply for an additional insurance policy to cover any damages not listed in the general insurance policies.