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| *Loan,banking and credit>>>homeowner insurance |
Are hazard insurance and homeowners insurance the same thing? |
I've seen them used interchangeably, are they the same thing? If not how do I know what I need? No, they aren't, although you're right, mortgage companies will use them interchangably. Hazard insurance, means "physical things that might go wrong with the house". Practically it means fire and windstorm insurance, but technically it's not defined. :D The cheapest way to get "hazard" insurance is to buy a homeowners policy, but other policies will ALSO fulfill the requirement - like a commercial property policy, or a dwelling fire policy for rental houses. Source(s): Agent, 20+ years not exactly http://www.insurance-assurance.com/... No, they are not the same thing. Hazard insurance is generally used to describe a Dwelling Fire policy. This is the coverage you place over a rental unit, as it protects the owner's building from a specific list of perils (like fire, wind, theft), which means that a loss is not covered unless it is caused by one of the specific perils insured against. It will also (usually) provide liability coverage for the policy holder. Other coverages can be purchased/endorsed to the policy, like contents coverage. Homeowner's insurance does a lot more for you in terms of coverage. First, like fire insurance, it covers the structure of your home, but is generally more open peril with exclusions (i.e. a loss is covered so long as it's not specifically excluded). Your personal property is covered much more broadly and you receive a ton of extra benefits. Most importantly you receive CPL/GPL, which is your personal liability coverage. If you're sued this coverage will (depending upon policy limitations) provide coverage for you. If you're moving into a house, I'd high recommend you purchase a full homeowner's policy through an independent agent (i.e. one who represents several different companies) so that your specific needs can be matched with the best company possible for the best possible price. Good luck with your new home! |
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