The occupancy status of your home is necessary to know what type of Hazard Insurance Policy will be necessary. Although it is necessary for all homes, many people are not aware of the types of hazard insurance, Homeowners Insurance, Landlord Insurance, Condo Unit Owners Insurance & Vacant Home Insurance.
Hazard insurance can be purchased online. It is important to Get a FREE Quote first and make sure that all the options, discounts, coverage, and desired deductible are selected before proceeding.
The most affordable premium option will be the highest deductible; therefore, if you have a mortgage, you should check to see what the highest acceptable deductible is. You must make sure that the correct Effective Date and Mortgage Company information are listed before purchasing the policy, copy of your policy will automatically be sent to your mortgage company as long as the correct mortgage company’s address is listed on the policy.
Most commonly, hazard insurance will include protection against the perils of Fire, Lightning, Explosion, Wind & Hail (unless excluded), Smoke, Aircraft, and Vandalism; although these are the most common perils, it is important to review your specific policy to be sure that these perils are included in your Hazard Insurance policy. Mortgage companies usually require Wind & Hail Coverage, however, in some high-risk wind areas, it is common for policies to exclude Wind & Hail Coverage.
Mortgage companies require hazard insurance in order to secure their financial interest in the property against which they are lending money. In some high-risk areas around the country, it is common to have to purchase additional policies to complement your Homeowners Insurance Policy; perhaps a Flood Insurance Policy or a Wind & Hail Insurance Policy. It is uncommon for Earthquake Insurance to be required by a mortgage company; in which case, and additional Earthquake Insurance Policy would be available in high-risk areas.
How Much Does Hazard Insurance Cost?
Hazard Insurance is priced in terms of annual premium. The rating factors vary in different areas; the following are some of the most common but don’t apply in all areas: Geographic Location, Insurance Credit Score, Age of Home, Occupancy, Limits of Coverage, Deductible & selected optional coverage.
If your mortgage includes and Escrow/Impound account, your monthly contribution will be saved in this separate sub-account until which time your insurance company sends a policy invoice to be paid either for a new policy or for your insurance policy renewal.
Homeowners Insurance is a type of hazard insurance. Hazard Insurance is only referred to by mortgage companies requiring insurance to insure their financial risk from perils such as Fire, Lightning, Wind etc… Actually, one would be purchasing either Homeowners Insurance, Fire Insurance, Landlord Insurance, Condo Unit Insurance etc…Therefore, it is recommended that you speak with your mortgage lender to make sure you are buying the necessary coverage to protect your home.