Insurance is a difficult thing to juggle, especially for first-time homeowners. When you’re in the process of purchasing a home for the first time, you have enough to take care of without considering the various types of insurance thrown at you that all sound the same.
However, it’s important to know when arranging your home insurance if you have all of your insurance needs covered. Most homeowner’s insurance does not include hazard insurance, and this comes into play when setting up a mortgage. Your lender could require different forms of insurance, sometimes referred to as “hazard insurance.”
Navigating the different types of insurance for your home can be a complicated process that requires professional attention. An insurance claim lawyer can help guide you through the various contracts, suggest coverage, and also make sure you get the compensation you deserve if something does happen.
Your Insurance Attorney has handled over 10,000 insurance claims and aims to provide you with the legal help you need. If you’re looking for an insurance lawyer in Miami Dade County, call us for a free consultation today!
The best way to think about hazard insurance is as a part of a homeowners insurance policy rather than a standalone, specific type of insurance. Your homeowners insurance policy, upon purchase, will typically include protection against specific perils, which can be termed “hazards.” In this sense, “hazard insurance” is essentially the part of your homeowners policy that covers different damages to your property.
There are different hazards generally included in a homeowners policy, and while different policies cover different areas to varying degrees, generally most will insure against fire, hail, vandalism, and vehicle damage.
Differences in Hazard Insurance
Different homeowners insurance policies will vary in their coverage. The HO-2 form will cover 16 specific perils: Lightning or fire, hail or windstorm, explosions, damage caused by an aircraft, theft, riots or civil disturbances, smoke damage, vehicle damage, vandalism, falling objects, volcanic eruption, pipe freezing, damage from the weight of snow and ice, water damage from plumbing, heating, or air conditioning, water heater cracking, tearing, and burning, and damage from electrical current.
What usually isn’t included in your homeowners policy are earthquake or flood protection, and your options will shift depending on your area of residence, but it is important to know what your policy covers and how common these excluded perils are where you live.
For example, if you live in an area like Florida where hurricanes are common, flood protection can come in handy and you will need to purchase additional hazard insurance. For more advice regarding these types of insurance coverage, seek out an insurance claim lawyer like Your Insurance Attorney.
Having homeowners insurance to cover you against hazards is not required legally, but can be required by your lenders. If you decide to take out a mortgage to purchase a home from a lender, that lender will insist that you have certain types of hazard insurance.
Because the mortgage is secured against the value of the property, damage from something like a hurricane or fire would reduce that value and endanger the mortgage, so lenders often insist on certain kinds of hazard insurance. This means that they often want the first year of insurance premiums paid up in advance, as well as possible additional months.c
Insurance Claim Lawyer
Not sure about which kinds of hazard insurance you should get for your home, or wondering what claims you are entitled to? Call Your Insurance Attorney, a top insurance claim lawyer in Miami Dade County, today!