What is homeowners hazard insurance?

UPDATED: Nov 4, 2015

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UPDATED: Nov 4, 2015Fact Checked

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Asked November 4, 2015

1 Answer

In Florida, hazard insurance is a policy which covers homes for specific hazards like floods or hurricanes. There are also policies that cover people living in high crime neighborhoods in case of vandalism. A hazard insurance policy can provide extra coverage for any kind of hazard or danger for which homeowners are at higher than normal risk. The hazard policy often has very specific coverage guidelines related to fire, earthquake, or other hazards. These policies provide coverage above and beyond what the homeowner receives through their comprehensive homeowner's insurance policy.

Many of the hazard policies are designed to address the damage caused by earthquakes, strong winds, floods, and fire. This is often necessary because while a comprehensive homeowner's insurance policy may offer some coverage for the damage cause by fire, floods, and other hazards, the policies may not cover all the damage caused by the events. Hazard policies promise the homeowner they will pay for all the expenses related to the specific hazard the policy is designed to cover. However, hazard policies cover physical damage and not liability related to those events.

Another difference between hazard insurance and traditional comprehensive home insurance is the ability for homeowners to insure their properties against vandalism, damage to a construction site, or damage caused by a breached dam. Hazard policies may also be necessary for business equipment, works of art, jewelry, or anything of high value which may not be fully covered by standard homeowner insurance policies. In Florida, some owners have a difficult time or have to pay very high premiums to get hazard policies to cover hurricanes because of the high number of hurricane claims each year. People that have filed one or more hazard claims may also have difficulty getting hazard insurance for that same home.

Premiums homeowners must pay to get hazard insurance can vary widely. The insurance company generally takes into consideration the home's appraised value, construction methods, the age of the property, and the frequency of that kind of hazard doing damage to homes in the area. In some particularly hurricane-prone areas of Florida, insurance companies may have some windstorm exclusions or set other types of limits to the hazard insurance coverage they offer. However, the homeowner must be willing to pay the premiums related to Florida hazard insurance, otherwise, unforeseen circumstances can lead to their financial ruin.

Hazard insurance is necessary protection from hurricanes and floods. Every year in Florida there's a hurricane season. These hurricanes cause damage to people's homes due to high wind and torrential rain as well as flooding and floating or flying debris. Homeowners in Florida should get separate hazard insurance policies because chances are high their homes will be hit by a hurricane and/or suffer flood or other types of damage associated with hurricanes. Insurance company's hurricane damage maximum payouts in comprehensive policies usually aren't enough to cover your home and the valuables inside. After a hurricane, having hazard insurance can make all the difference in the world.

It's essential to purchase your hazard insurance from a reputable home insurance company. One with a proven record for quick claim resolution and good customer service. In Florida after catastrophe strikes hurricane and flood claims can come rapidly. You need to know your insurance company will offer a quick resolution to your claim. The Florida Better Business Bureau can provide information on the hazard claims payment history for specific providers. This will make it easier to find a company that will be there for you quickly should the need arise.

Florida with all its natural beauty is a great place to live. But it does have natural hazards including hurricanes and floods. Protect your home, belongings, and peace of mind by purchasing hazard insurance.

Answered November 6, 2015 by Anonymous

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