It can be confusing to understand what is and isn’t covered by a hazard insurance policy. In general, hazard insurance will only cover the occurrences listed explicitly in the policy. Therefore, it’s crucial to ensure that your hazard insurance policy covers disasters in your area. For example, if you live in the mountains, it may be reasonable to expect heavy snow and the potential damage it can bring. It’s important to remember that not all hazard insurance is the same. Be sure to read through your homeowners insurance policy and speak with your insurance agent to learn what exclusions or risks your policy may have. You may need to purchase additional types of coverage to protect against specific events, like if you buy a home in a flood zone, you might need to purchase an additional policy.
Covered
Several categories are covered by hazard insurance. Most are natural disasters, but some malfunctions within the home are covered by hazard insurance as well. These include:
- Fire and smoke damage
- Hail and wind damage
- Lightning damage
- Damage from snow, ice or sleet
- Damage from vehicles, including cars, aircraft and more
- Fallen trees and other objects
- Theft and vandalism
- Damage caused by heating, AC units or electric currents
Not Covered
Damages to personal property or injuries sustained on your property are not covered by hazard insurance. With this in mind, if a natural disaster happens, hazard insurance only protects the structure of your home from a disaster named in your policy. This may include the home’s structure, any garages or sheds, fences and some belongings inside the home if a covered event damages them.
Additionally, water damage caused by flooding is not covered, and homeowners will need to purchase flood insurance separately. Earthquakes, landslides and mudslides are also not covered in high-risk areas.
For example, if your home is in an earthquake-prone area, it may not be covered by hazard insurance, so you might want to also purchase earthquake insurance. Your hazard insurance coverage will change depending on where you live, so you may add additional insurance or purchase a separate policy that covers specific occurrences.
Other instances that aren't covered might include infestations from pests, mold damage or wear and tear that can happen over time.
