What is hazard insurance?
Hazard insurance is an insurance policy to protect homeowners against loss due to property damage. Lenders require that you get a hazard insurance policy before you buy or refinance a home. Hazard insurance provides compensation for losses due to property damage caused by a fire, a severe storm, or other types of perils. Generally, you have to pay for the first year of hazard insurance on the closing date. Hazard insurance is also available as part of a more comprehensive homeowners policy.
Hazard insurance is an insurance policy to protect homeowners against property damage. Lenders require that you get a hazard insurance policy before you buy or refinance a home. Hazard insurance shields you against property damages caused by a fire or a severe storm. If a catastrophe does happen, hazard insurance should cover the costs to rebuild your home. Generally, you have to pay for the first year of hazard insurance on the closing date.
