What is the difference between hazard insurance and homeowners insurance?

I used a major chunk of my life’s earnings to purchase a house. That’s why I went a couple of extra miles to buy a home insurance policy to protect my house from all possible threats (at least financially). If you decide to buy home insurance, then there are two terms that you’ll come across: homeowners insurance and hazard insurance.

Now, what is the difference between hazard insurance and homeowners insurance? Let’s find out:

Hazard insurance covers your house structure from several types of hazards, such as vandalism, earthquakes, fires, etc. You should know that hazard insurance covers damage only to your home, or home’s structure and not the contents within your home. This type of insurance is just one part of a comprehensive homeowners’ policy. It covers:

• Cyclone

• Vandalism

• Fire

• Earthquake

• Electrical failures like a short circuit

• Water damage due to burst or leaky pipes

Now you know what is hazard in insurance

This type of insurance is comprehensive insurance for your house that covers several parts, including hazard insurance. You should go for homeowners insurance if you want to protect your belongings as well apart from your building structure. It is similar to hazard insurance, such as structural damage due to explosions, earthquakes, or fire. Additionally, it also covers:

• Damages to artifacts, furniture, and garments within the insured house

• Medical bills of injured people within the insured house at the time of unfortunate hazard or calamity.

In a nutshell, a homeowners’ insurance policy covers your home against structural damage while offering additional coverage for the content of the house. Generally, house owners have only one house insurance policy that also includes hazard insurance as well. However, sometimes lenders may ask you to get an additional hazard policy if they feel your present homeowners’ policy isn’t covering some hazards.

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Now you know what is the difference between hazard insurance and homeowners insurance.