Home hazard insurance is home insurance that covers damages caused by certain specific hazards that are not covered by comprehensive home insurance. There are several different types of hazard insurance. In many cases, each type can be purchased separately. Comprehensive home insurance and hazard insurance compliment each other, filling in some of their respective gaps in coverage. However, there are circumstances where comprehensive home insurance is more vital than hazard insurance.

Comprehensive Home Insurance

Comprehensive home insurance cover damages that occurred inside the policy holder's house. Some policies also cover the land it's located on. Comprehensive home insurance is primarily designed to cover damage to the policyholder's property and help the policy holders pay liability costs. Policy holders can choose their coverage depending on their specific circumstances. Coverage options include:

  • Dwelling Coverage – Covers the house itself and the attached structures, as well as built-in appliances, plumbing, heating, built-in air conditioning systems and electrical wiring.
  • Personal Property Coverage – Covers personal belongings of anyone who resides in an insured home (guests don’t count). Detached appliances such as window air conditioners and mini refrigerators also fall under this category.
  • Other Structures Coverage – Covers detached structures such as garages and storage sheds, as well as fences, driveways and sidewalks. It should be noted that unattached structures that are used for business purposes are not covered by home insurance.
  • Personal Liability - covers the costs resulted from any lawsuits that resulted from bodily harm and damage to personal property. This does not cover auto and business-related incidents.
  • Medical Payments - covers medical expenses for any guest who was injured on the homeowner's property, regardless of fault.

Hazard Insurance

Hazard insurance covers damages that occurred as the result of certain specific natural and man-made hazards. Hazard insurance policies usually provide dwelling and personal property coverage. While some do provide more, it is something that has to be negotiated.  The most common hazard insurance types include:

  • Flood Insurance - covers the damage caused by floods. For the most part, flood insurance is provided by FEMA though the National Flood Insurance Program. In order to be eligible for insurance, the policyholder must live in a community that signed up for NFIP. In recent years, some insurance companies started to offer private flood insurance. These policies are meant to supplement FEMA-run flood insurance policies and cover the damages that exceed it's maximum coverage limit.
  • Earthquake Insurance - covers the damage caused by earthquakes. If the house is completely destroyed, the insurance will pay the policyholder the value of the home. Earthquake insurance tend to be fairly expensive. Because of this, earthquake insurance isn't widely available outside, and even when it is, the policy is often limited to dwelling coverage.
  • Windstorm Insurance - covers the damage  caused by hurricanes and tropical storms. In addition to damage that can be directly attributed to high winds, some policies may cover the debris damage, fires that occurred as the result of malfunctioning equipment and vandalism that occurred in the wake of the disaster.
  • Fire Insurance - covers damage caused by natural and man-made fires. This is one of the more inclusive types of hazard insurance, covering the other structures in addition to dwellings and personal property.
  • Vandalism Insurance - covers damage caused by deliberate vandalism.

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