What Is Hazard Insurance And Is It Just Home Insurance

Think of hazard insurance the same way you would think of your body. You have a skeletal system and your backbone is what holds you up and makes sure you walk day today. Hazard insurance is much like the backbone of your homeowner’s policy. Your policy will have hazards and perils included and Hazard insurance is the piece that provides financial protection for your home and other personal belongings against those hazards and perils that are included in your policy. If you are ever forced to relocate because your home is damaged in a Tornado, fire or other unfortunate reason your home might be destroyed by a covered peril, Hazard insurance covers your living expenses.

You are probably asking what EXACTLY it is that Hazard insurance does or what hazards are actually covered. You are also probably also asking how much hazard insurance do you need to cover your house. The answer to this question can depend on a lot of different factors including where you live, how old your house is, what the value of your home is, and a few more things.

What Does Hazard Insurence Actually Cover Or Typically Cover

When you purchase your homeowner’s insurance policy it should include 3 types of protection against hazards otherwise known as perils.

  1. Dwelling Coverage
  2. Structures Other Than Where You Dwell
  3. Personal Property

These coverages which fall under the umbrella of Hazard insurance might help reimburse you for some of these covered perils.

  • Wind
  • Fire
  • Smoke
  • Theft
  • Hail
  • Power surges
  • Explosions
  • Civil unrest or riot
  • Water damage caused by a pipe burst or appliance
  • Explosions
  • Falling Objects
  • Damage caused by snow, ice, or sleet
  • Vandalism
  • Falling Objects

We should always take into account that not all policies are going to be the same. You must always read through your policy closely and talk it over with your agent. This way you will have a good understanding of the risks that may or may not be covered by your Hazard or Perils insurance policy. One thing to think about in Missouri, especially the St. Louis area is that earthquakes are usually not covered under a homeowners policy.

How Much Will A Hazard Insurance Policy Cost You

Hazard insurance is tied into your homeowner’s policy and you won’t pay for it as a separate policy. The cost will be included with your premium that includes the entire homeowner’s policy. As stated above your insurance policy will increase with Hazard coverage based on different factors.

  • What your home is made of
  • If your house has certain security features
  • The policy limit that you choose
  • The policy deductibles you choose
  • How old your home is
  • The Value of your home

There is research that has been done that shows the average cost of a homeowners insurance policy is $1,083. This depends on a lot of things, but 2 obvious ones are where you are located and what type of home you have. If you have a newer home you will probably pay lower rates while an older home will likely cost you more. Reasons for an older home costing more include damages the home may have received from hazards and will cost more to repair.

Other factors to think about are homes made of stone or brick could receive a discount. If your home is built using wood and especially if your home is in a dry area where wildfires are possible you most likely will not see a discount and will possibly pay more. Certain security features installed in your home could also lead to a premium discount.

Your policy limits and deductible will also affect your premium. Just like with car insurance, if you have a high policy limit with a lower deductible you will most likely pay more for your monthly premium. These things can all be customized when purchasing your premium.

Insurance Advisors Of St. Louis have a group of independent insurance agents that will help you through the entire homeowners, hazard, and perils insurance process. We will find the best policy for your home and the best price since we have many companies to choose from.

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