Hazard Insurance, commonly called Homeowner's insurance or property insurance is insurance that covers property damage caused by fire, wind, storms, and other similar risks. Sometimes earthquakes and floods are also covered, but normally require a separate insurance policy. Hazard insurance is normally designed to cover physical property damage, rather than owner liability for accidents on the property.

Unless you purchase your property cash, you are normally required by the lender to acquire Hazard insurance for the property, in an amount sufficient to cover the amount of the mortgage. In some situations, normally with condos or town houses, the association provides Hazard Insurance for the structure. This is not a comprehensive insurance, and normally only covers the exterior of the structure and not risks such as Fire, theft or other incidents which might result in a loss of possession or the interior of the property.

While Hazard insurance is for when you own the property, there is also Renter's Insurance for those who rent, and covers the content within the property. they are both two separate insurance policies.

You should always check with your Insurance Broker to make sure you are covered to the degree you desire.

Get more information on Hazard Insurance in the Real Estate Forum.