What Is the Difference Between Hazard Insurance and Homeowners Insurance?
If you feel like you hear a lot of confusing terms as you search for a new home, you’re not alone. In fact, one topic many new home buyers struggle with is the difference between hazard insurance and
seguro de viviendas.
What Is Hazard Insurance?
So what is hazard insurance on a home? Hazard insurance generally refers to coverage for the structure of your home only. Other coverages within your homeowners insurance policy will help pay for different kinds of damage. Hazard insurance also doesn’t help pay for injuries that happen to you or your guests after an accident.
The reason hazard insurance is a common term is actually because of lenders. Your mortgage provider may require hazard insurance at minimum before they will issue you a loan, because that is the only portion of the homeowners insurance policy directly related to the structure of your house itself. This may create the misconception that you can buy hazard coverage separately from homeowners insurance, which is not accurate. If your lender has specified that you need hazard or dwelling coverage, just know that generally buying a homeowners policy will satisfy their requirements.
So if a fire destroys your home causing $5,000 worth of damage and you have a $1,000 deductible, your homeowners/hazard coverage would pay the other $4,000.
Hazard insurance can also help cover risks like:
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Hail
- Robo
- Vandalismo
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Explosions
As a homeowner, you might think this won’t happen to you. But according to the Insurance Information Institute, property damage represented over 91% of homeowners claims in 2017.2
Hazard Insurance vs. Home Insurance
Your hazard/homeowners coverages are bundled for a reason. They work together to protect you. This means that if your house’s structure gets damaged, your home insurance will help pay for repairs. It’ll also help pay your temporary additional living expenses if you need to stay in a hotel.
With home hazard insurance coverage included in your home policy, you’ll have protection from damages caused by:
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A tree falling and destroying part of your roof
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Your basement getting water damage from burst pipes
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Lightening burning the siding on your home
Some other coverages you can bundle with your homeowners policy are:
Also keep in mind that hazard insurance, which is your standard home coverage, doesn’t pay for damages from flooding. Instead, you’ll need a separate flood insurance policy.
How Much Does Hazard Insurance Cost?
How much you pay for homeowners insurance premiums depends on a variety of factors, including your:
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Home’s value
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Policy limits
- Monto deducible
We also recommend that you insure your home for 100% of its
replacement cost. That way, if you need to rebuild it, your insurance can help cover all construction expenses.
Find the right coverage for your home by calling our representatives at
888-413-8970. We’re the only home insurance company endorsed by AARP and with our flexible options, savings and expert service, you’ll know that your home is getting the best protection possible.
Additional Home & Auto Insurance Programs From The Hartford
In addition to the AARP Homeowner’s Insurance Program from The Hartford, we offer four other auto and home insurance coverages:
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Seguro para arrendatarios to protect your possessions and valuables in a property that you lease.
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Condo insurance, which provides customizable levels of protection for your condominium at a rate that fits your budget.
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Flood insurance to protect your home against damage caused by flooding. Keep in mind that this is an optional insurance coverage.
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Umbrella insurance if the cost of a covered loss is higher than the limits of your standard coverages.
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Divulgaciones adicionales a continuación.