Man holding bucket up to leak

What is Hazard Insurance?

You never want something bad to happen to your home, but if your toaster oven starts a fire or you’re the victim of a break-in, hazard insurance could help. Having the right hazard coverage in your homeowners insurance policy can help you protect what may be your biggest investment.

Hazard insurance is the part of a home insurance policy that protects the main structure of your home, any sheds or fences, and your belongings. As the name suggests, hazard insurance covers you in case “hazards” (or perils, as they’re often called) cause damage to your home or property.

Lenders generally require you to have some level of hazard insurance to get a mortgage for a new home.

What does hazard insurance cover?

Events that may be covered under hazard insurance include:

  • Storm damage (wind, hail, snow, ice, lightning, etc.)
  • Fire and smoke damage
  • Theft, including possessions and damage to the home
  • Fallen trees and other objects
  • Damage caused by vehicles
  • Vandalism or riots
  • Water damage
  • Explosions

What's not covered by hazard insurance?

Hazard insurance doesn’t cover injuries that occur on your property or damages caused to another person’s property by members of your household. So, for example, if your dog bites the delivery person, you’ll need a different type of home coverage.

If you live in an area that is prone to natural disasters such as floods or earthquakes, you’ll likely need to pay for a policy beyond standard hazard insurance. Plus, things like jewelry, watercraft, ATVs and coins may require increased coverage limits to meet your needs.

How much hazard coverage do I need?

How much you need depends on the value of your home and your belongings. An experienced insurance agent can help you find the right amount of coverage to replace your home based on its age, size and features. Generally, personal property limits are set at 50-75% of the home’s value, and the limit for other structures is usually about 10% of the home’s value.

How can I protect my home?

There are several types of coverage you should consider when shopping for home insurance.

  • Dwelling coverage protects things like floors, the roof, cabinets and fireplaces.
  • Other structures coverage protects things like detached garages and fences.
  • Personal property coverage protects things like furniture, clothes, appliances and electronics.
  • Additional living expense coverage pays for temporary living expenses.
  • Liability coverage protects you in case someone is injured, or their property is damaged.
  • Medical payment coverage covers medical bills for others.

In addition to home insurance, you may want an umbrella insurance policy to provide an extra layer of protection in case of a major accident or high-value lawsuit.

Contact a COUNTRY Financial® rep to discuss the types and amounts of hazard insurance and other home insurance coverages you need.


Updated 10-2-23

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