Legal Definitions - hazard insurance

Hazard insurance is a type of insurance that protects homeowners and business owners from unexpected and sudden physical damages caused by events such as fires, severe storms, and other similar events. If the specific event is covered by the insurance policy, the homeowner or business owner will receive compensation to cover the cost of any damage incurred.

For example, if a homeowner's house is damaged by a fire, hazard insurance will cover the cost of repairing or rebuilding the damaged parts of the house. Similarly, if a business owner's store is damaged by a severe storm, hazard insurance will cover the cost of repairing or rebuilding the damaged parts of the store.

It is important to note that hazard insurance is different from catastrophe insurance. Hazard insurance is a section of a standard homeowners insurance policy that protects the home/building's structure. Catastrophe insurance, on the other hand, is a standalone policy that covers specific types of disasters, including those caused by humans.