Coldwell Banker Mayfield Realty

Comparing hazard insurance & homeowners insurance

by Julie Fahlgren 09/26/2022

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
Author

Julie Fahlgren

 

Julie is a Licensed Real Estate Broker with nearly 20-years of experience in the Central Oregon housing market. Julie, a proven leader in the industry, is passionate about working directly with her clients as a buying and selling agent. She has an outstanding reputation of begin an honest and hard-working professional who strives to maintain long-term relationships built on trust and mutual respect. To Julie, her clients’ needs come first, and providing outstanding service is her top priority. Her valued long-term clients trust her to listen. She helps them find their new home and/or sell their existing home while positioning their house perfectly in today’s market. Julie is a family-oriented woman of faith, and has a large loving family, all native to Central Oregon. She and her husband own a successful small automotive repair and antique automotive restoration business in Redmond, and in every aspect of their businesses, both real estate and the family business, the client’s needs come first! Having lived in Central Oregon the majority of her life, she is able to offer you expertise in this beautiful and unique community. Most importantly Julie believes in listening to the desires and needs of her clients and respecting their knowledge of what is right for their family, so she will always be your #1 advocate when selling or buying a home.