Hazard Insurance

Definition: Insurance protecting against specified physical losses to property, commonly referring to the property coverage within homeowners insurance.

Example

A covered fire damages a home, and the policy responds subject to its limits, exclusions, and deductible.

Keep the distinction clear

A standard homeowners policy generally excludes flood damage. Hazard insurance protects against covered property losses; mortgage insurance primarily protects the lender against borrower default.

Related terms

Insurance Clause · Private Mortgage Insurance (PMI) · Escrow Account

Keep studying

Mortgages: Borrower, Lender, Ownership, and Key Clauses

References: CFPB: shopping for homeowners insurance

Pronunciation (US): HAZ-erd in-SHOOR-unss (capitals show stress)

Pronunciation reference: Merriam-Webster