Unexpected problems occur every day to homeowners. When they happen, they can lead to serious financial loss for some people. And, that may mean it is very difficult to overcome the problem and get on with your life.
You have home insurance for this reason. It helps minimize the financial risks you face as a property owner. A key component of your policy is hazard insurance. It is generally not a separate policy. Rather, it is a term that describes a specific component of coverage in your current policy.
What Is a Hazard?
Hazards can be anything that occurs to your home that you do not expect. Sometimes these types of losses can be very significant. In others, they can cause minimal damage. In short, they include the types of perils your home insurance covers. Here are some examples of hazard insurance coverage your policy may offer.
- Fire damage and the related smoke damage from it
- Lightning strike damage (often including fire)
- Separate fire damage
- Windstorm damage such as damage from tornadoes or hurricanes
- Theft and vandalism
- Hail damage
- Falling objects, such as trees
- Vehicle and aircraft damage (when they strike your property)
- Riots and civil commotions
- Freezing systems such as plumbing, air conditioning systems, or heating systems
- Damage from the weight of snow, sleet, or ice
It is important to verify what your specific insurance policy covers. There are differences between them. Some policies will have specific exclusions. These are specific types of instances in which your policy does not protect you.
Going Further: Getting More Protection
Hazard insurance has some limitations. You may be able to extend your coverage further with a separate policy. These policies can cover some of the exclusions common to home insurance policies. For example, this may include flood insurance. You may wish to purchase a policy for landslide protection. Another common exclusion is earthquakes in some areas. But, you can invest in earthquake coverage if you live in a high-risk area.
Hazard insurance only goes so far. Some property owners may wish to extend the limits of coverage they have as well. Be sure you have enough coverage to adequately replace your home and possessions in a total loss.
Work closely with your Florence SC home insurance agent. Discuss the types of excluded hazards on your policy. Then, update it as you need to. Having hazard insurance is important to all property owners. You cannot prevent damage from occurring, but you can safeguard against the loss.