Due to the extreme weather conditions often present in Florida, residents need homeowners and hazard insurance to protect their properties against a variety of common risks. From hurricanes to fires, hazard insurance can help you repair or rebuild your home if it is destroyed by a covered hazard.
Hazard insurance is part of every standard homeowners insurance policy and is essential to keeping your property safe. Mortgage providers also typically require homeowners to have hazard insurance before being approved for a loan, making it a necessity for anyone that wants to purchase a home.
Here’s what you need to know about whether or not you need hazard insurance on your Florida home.
What is Hazard Insurance?
Hazard insurance is the portion of your homeowners insurance policy that protects your home against common disasters. This may include perils like fires, hurricanes, windstorms, theft, and more.
Hazard insurance generally refers to the portion of your homeowners insurance policy that protects your home’s structure, not the liability coverage included in your policy.
Hazard insurance can’t be purchased as a standalone policy. It can only be obtained by purchasing a standard homeowners insurance policy. Before being approved for a mortgage, your lender will likely require you to have a certain amount of hazard insurance included in your homeowners insurance coverage.
Is Hazard Insurance Different From Home Insurance?
Mortgage lenders often require homeowners to purchase hazard insurance before being approved for a loan. This can cause some confusion for homeowners as hazard insurance is not a standalone insurance policy.
Hazard insurance is simply the component of your homeowners insurance policy that covers the structure of your home against certain perils. All homeowner insurance policies include hazard insurance, and you cannot purchase hazard insurance separately.
Lenders require you to purchase hazard insurance as they want to ensure their investment is protected. While there are other components of home insurance that offer protection for homeowners, lenders are primarily concerned with the structure of your home. As such, they often refer specifically to hazard insurance rather than homeowners insurance in general.
What Does Hazard Insurance Cover?
Hazard insurance covers your home against the named perils listed in your home insurance policy. If you have an open peril policy, then your home is covered against all hazards unless they are specifically excluded.
Typically, hazard insurance covers several common disasters, including:
● Fire damage
● Hurricanes
● Hail
● Theft
● Vandalism
● Lightning
● Fallen objects
● Explosions
● And more
Homeowners should review their homeowners insurance policy’s declarations page to find more information about what hazards they are and are not covered against.
What Does Hazard Insurance Not Cover?
Hazard insurance will typically not provide coverage for flood or earthquake damage. Depending on where you live, especially around the Miami area, you may want to consider purchasing flood insurance and earthquake insurance to ensure your home is protected against these disasters.
Do Florida Homeowners Need Hazard Insurance?
Florida homeowners should strongly consider purchasing hazard insurance to ensure their homes are protected against the many different risks that can cause damages to their property.
Residents in cities like Miami, Kendall, Pembroke Pines, Miramar, Weston, and Davie are vulnerable to disasters like hurricanes and tropical storms, which can cause significant damage to their homes. Without hazard insurance, you would have to pay out-of-pocket to repair these damages. With hazard insurance, depending on your coverage limit, your policy may cover all of your expenses so that you can rebuild your home without sacrificing your financial security.
Not only does hazard insurance provide essential coverage against common disasters, but most mortgage lenders will require you to have hazard insurance to be approved for a home loan.
How Much Does Hazard Insurance Cost?
The cost of hazard insurance depends on several factors, including:
● The value of your home
● Location
● Coverage limits
● Deductibles
● Home construction
● Home safety features
● Amenities
● And more
If you live in an area that is frequently impacted by natural disasters, like hurricanes, you may have a difficult time finding affordable home insurance. Be sure to ask your insurance agent about potential discounts that can help you save on home insurance.
Request a Home Insurance Quote
All Florida homeowners need hazard insurance to protect their homes and personal belongings against common disasters like hurricanes, fires, tropical storms, theft, and vandalism. Without this coverage, you’re leaving your home vulnerable to damages, and you may have trouble being approved for a mortgage.
At FIB Insurance, we work with homeowners in Florida to help them find affordable home insurance policies that offer comprehensive protection against common hazards. Contact FIB insurance today to request a custom quote and learn more about homeowners insurance in Miami, Kendall, Pembroke Pines, Miramar, Weston, and Davie, FL.