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Hazard Insurance

Definition

Home insurance, also commonly called homeowner's insurance, is a type of property insurance that covers a private residence. It is an insurance policy that combines various personal insurance protections, which can include losses occurring to one's home, its contents, loss of use, or loss of other personal possessions of the homeowner, as well as liability insurance for accidents that may happen at the home or at the hands of the homeowner within the policy territory.

What is '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.

Explaining '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.


Further Reading


Beyond moral hazard: Insurance as moral opportunity
heinonline.org [PDF]
… benefit of a dependent household."33 Huebner, in essence, reversed the moral hazard argument: the … 54 John Commons, who might be called the intellectual father of social insurance, put it … individual workers did not have the ability to prevent the common hazards of industrial …

Charity hazard—A real hazard to natural disaster insurance?Charity hazard—A real hazard to natural disaster insurance?
www.tandfonline.com [PDF]
… benefit of a dependent household."33 Huebner, in essence, reversed the moral hazard argument: the … 54 John Commons, who might be called the intellectual father of social insurance, put it … individual workers did not have the ability to prevent the common hazards of industrial …

Regressivity in public natural hazard insurance: a quantitative analysis of the New Zealand caseRegressivity in public natural hazard insurance: a quantitative analysis of the New Zealand case
link.springer.com [PDF]
… benefit of a dependent household."33 Huebner, in essence, reversed the moral hazard argument: the … 54 John Commons, who might be called the intellectual father of social insurance, put it … individual workers did not have the ability to prevent the common hazards of industrial …

Deposit insurance, moral hazard and market monitoringDeposit insurance, moral hazard and market monitoring
academic.oup.com [PDF]
… benefit of a dependent household."33 Huebner, in essence, reversed the moral hazard argument: the … 54 John Commons, who might be called the intellectual father of social insurance, put it … individual workers did not have the ability to prevent the common hazards of industrial …

The unfortunate regressivity of public natural hazard insurance: A quantitative analysis of a New Zealand caseThe unfortunate regressivity of public natural hazard insurance: A quantitative analysis of a New Zealand case
papers.ssrn.com [PDF]
… benefit of a dependent household."33 Huebner, in essence, reversed the moral hazard argument: the … 54 John Commons, who might be called the intellectual father of social insurance, put it … individual workers did not have the ability to prevent the common hazards of industrial …

On moral hazard and insuranceOn moral hazard and insurance
link.springer.com [PDF]
… benefit of a dependent household."33 Huebner, in essence, reversed the moral hazard argument: the … 54 John Commons, who might be called the intellectual father of social insurance, put it … individual workers did not have the ability to prevent the common hazards of industrial …

Mitigation and financial risk management for natural hazardsMitigation and financial risk management for natural hazards
link.springer.com [PDF]
… benefit of a dependent household."33 Huebner, in essence, reversed the moral hazard argument: the … 54 John Commons, who might be called the intellectual father of social insurance, put it … individual workers did not have the ability to prevent the common hazards of industrial …



Q&A About Hazard Insurance


Who pays for the policy?

The property owner will pay for the policy.

What is hazard insurance?

Hazard insurance protects a property owner against damage caused by fires, severe storms, earthquakes or other natural events.

Will homeowners' insurance cover all events that could do damage to your property?

No, it 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 considered high risk. If the homeowner lives in a high-risk area he or she may need a separate policy - such as flood insurance policy.

Where does a homeowner get this type of insurance?

A homeowner can purchase this type of insurance from an agent or broker.

What are some examples of exclusions on homeowners' policies?

Some examples include floods and earthquakes which are not covered under standard policies in most cases unless you have purchased additional coverage specifically for those perils at an extra cost. Floods and earthquakes are typically covered under separate policies if they occur within 100 miles of where you live; however, there may be limitations on how much money you receive after filing a claim based on what was paid out previously by other companies insuring homes in the same area during previous years when flooding occurred."