With so many apparent similarities between the two, hazard insurance and homeowners insurance are often mistaken for the same thing. Standard homeowners insurance policies include hazard coverage, but what about standalone hazard insurance?
Here is a basic comparison of hazard insurance and homeowners insurance to help clarify the differences and similarities:
Hazard insurance
Hazard insurance protects you financially if your property is damaged by a specific natural disaster. Some examples of hazard policies include tornado insurance, earthquake insurance and flood insurance.
Hazard insurance is typically required in certain areas where hazards are not otherwise covered by the standard homeowners insurance policy.
Homeowners insurance
Homeowners insurance includes basic hazard coverage for damage to your home from extreme weather, theft and other perils. It specifically includes dwelling coverage, which protects the physical structure of your home, and personal property coverage, which protects your belongings.
Homeowners insurance protects the contents of your home as well as the home itself. This is a major difference between homeowners and hazard insurance. Generally, home insurance covers a broader range of hazards, but won’t be able to help you if certain specific hazards, like tornadoes, occur.
Do you need hazard insurance?
Whether you require additional hazard insurance is dependent on your personal preference and where you live. In regions where tornadoes are common, for example, your mortgage lender might require you to get a tornado insurance policy before approving you for a loan.
Even if not required, having hazard insurance coverage can give you peace of mind. If you have an additional hazard policy, you’ll know you have financial coverage if your home and belongings are damaged by something otherwise excluded from your home insurance.
About the Author
Meghan Riley
Hi, I'm Meghan Riley Bowling!
As one of Atlanta's top real estate agents and Atlanta Board of Realtors Lifetime 'Top Producer', I bring over 19 years of experience as both a Realtor and a licensed interior designer to the table. My extensive background uniquely positions me to be your best advocate in today’s dynamic market. I have a keen eye for a home's true potential and the expertise to navigate every twist and turn of the transaction process.
I understand what it takes to sell homes quickly and know how to create spaces that feel open, fresh, and inviting. For buyers, I excel at helping you envision the potential of a property, helping you find the perfect home to meet your needs.
With a commitment to excellence, I am your best source in real estate, offering dedicated service, strong negotiation skills, and deep market knowledge. I am your greatest asset to help achieve your goals!
