Hazard insurance is another word for homeowners insurance. The hazards covered by your insurance policy are also referred to as perils. When you have a mortgage on your home, your lender will require that you carry a homeowners insurance policy that is sufficient to cover the amount of money you still owe on your home. Whether you call it your homeowners insurance or a hazard policy, it protects you from extensive financial loss. Let’s continue reading to delve into this topic.
What Is Hazard Insurance?
Hazard insurance protects you from several hazards that may damage your home. These perils can include, but are not limited to, fire, vandalism, theft, or storm damage. Not all policies are alike. Some may cover more hazards than others. By working with your insurance agent, you can have specific perils included in your policy that will provide you with the level of coverage you need.
What Does It Typically Cover?
Hazard is another name for peril. When you look through your insurance policy and find the list of perils that are covered, these are the “hazards” you are protected from. Some policies cover up to seven hazards, while others can cover as many as sixteen. If you live in certain areas, you may need to add insurance for hazards like floods, hurricanes, earthquakes, and wildfires.
3 Home Insurance Coverages That Protect Against Hazards
Dwelling coverage, other structures coverage, and personal property coverage are three elements of your homeowners insurance that protect you from several types of hazards. It’s understood that your home or dwelling would be covered, as well as your personal property. By working with your agent, you will be able to get the amount of coverage you need to maintain financial security.
Deductibles and Limits
You can set your deductibles as high or low as you want. Higher deductibles will result in lower premiums, while a lower deductible will increase your monthly premiums. You should also become familiar with your policy’s limits for each type of coverage. You can choose to increase your coverage, but you will still have limits to deal with. Working with your insurance agent will ensure sufficient coverage to keep your home safe.
How Much Does Hazard Insurance Cost?
The cost of your hazard insurance will depend on many different things. Your premiums are directly affected by the amount of coverage you need. Your deductible will also play a role in determining your monthly premiums. The amount of money you pay for your premiums may change if you choose to adjust your deductible or purchase additional coverage.
Navigate Through Hazards with Scautub Agency
Understanding your homeowners insurance and the hazards it covers is essential. Consult the agents at Scautub Agency if you have questions about which hazards are covered and which are not. We have the answers you need to make the best possible decisions regarding protecting your home from many hazards or perils. Contact us today for further assistance.