Hazard Insurance
Definition of 'Hazard Insurance'Insurance that protects a property owner against damage caused by fires, severe storms, earthquakes or other natural events. As long as the specific event is covered within the policy, the property owner will receive compensation to cover the cost of any damage incurred. Typically, the property owner will be required to pay for a year's worth of premiums at the time of closing, but this will depend on the exact details of the policy. |
|
Investopedia explains 'Hazard Insurance'A typical property or homeowners' insurance policy usually won't cover all events that could do damage to your property. Some events will definitely be excluded from homeowners' insurance in high-risk areas. For example, Florida is prone to hurricanes and is, therefore, considered high risk. If the homeowner lives in a high-risk area, he or she may need a separate policy - such as a flood insurance policy. |
Related Definitions
Articles Of Interest
-
Insurance Tips For Homeowners
Use these simple ideas to save money and get better coverage for your house. -
How An Insurance Company Determines Your Premiums
Find out how insurers use credit history to build an insurance score and how it could affect your bottom line. -
The History Of Insurance In America
Insurance was a latecomer to the American landscape, largely due to the country's unknown risks. -
Understanding Your Insurance Contract
Learn how to read one of the most important documents you own. -
10 Hurdles To Closing On A New Home
It's the biggest purchase of your life - find out what can go wrong before you even close the deal. -
How does the 80% rule for home insurance work, and how do capital improvements affect it?
The 80% rule refers to the fact that most insurance companies will not fully cover the cost of damage to a house due to the occurrence of an insured event (e.g. fire or flood), unless the homeowner ... -
Natural Disasters: Issues Relating To Leaves Of Absence
Small businesses are more likely to fail in the aftermath of devastation. How can you as an employee handle issues after a disaster? -
Automatic Cancellation Of PMI When You're Underwater On Your Mortgage
You might be suprised to learn that after reaching certain criteria, your PMI will be automatically cancelled. -
New Year Planning For Business Owners
Make a resolution to start your business off on the right foot in the new year. -
Beware These Disaster-Related Scams
Con artists prey on the weak. Those who just survived a natural disaster can be easy targets.
Free Annual Reports