Do I Need Hazard Insurance If I Have Homeowners Insurance?

Updated: May 22, 2024

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Homeowners insurance policies include hazard insurance, otherwise known as dwelling coverage, by default. Hazard insurance protects your home’s structure against damage from covered perils, such as fires, hail storms or theft. You can't purchase it separately, as it is part of the home insurance bundle, along with other coverages, such as personal property coverage, liability coverage and loss of use coverage.

Key Takeaways

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Hazard insurance is automatically included in home insurance and cannot be bought separately.

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Homeowners insurance offers broad protection, including hazard insurance, personal property coverage, liability coverage and loss of use coverage.

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Understanding the scope of coverage is crucial for ensuring your home and assets are fully protected against a wide range of perils.

Is Hazard Insurance Needed in Addition to Homeowners Insurance?

Homeowners insurance policies inherently come with hazard insurance, also called dwelling coverage. This type of insurance safeguards the physical structure of your home from damage due to specific risks like fires, hail storms or theft. It's not available for separate purchase; it's included in standard home insurance packages, along with personal property, liability and loss of use coverage.

Perils Covered by Hazard Insurance

Hazard insurance, also known as dwelling coverage, is a fundamental part of standard home insurance policies designed to protect the physical structure of your home from specific perils, such as vandalism and theft, windstorms or fires. The scope of this coverage typically includes:

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    Structure of the Home

    Covers the main house structure, including walls, floors, roof, ceilings and built-in appliances.

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    Attached Structures

    Covers structures attached to the main house, such as an attached garage, deck or porch.

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    Built-in Appliances

    Covers built-in appliances that are part of the structure, like a built-in dishwasher or central air conditioning.

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    Plumbing, Electrical Wiring and HVAC

    Covers the home's internal systems, including plumbing, electrical wiring, heating, ventilation and air conditioning systems.

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    Foundation and Roof

    Covers the foundational elements of the home, including the basement and roof.

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    Permanent Fixtures

    Covers permanent fixtures within the home, such as built-in cabinets, hardwood floors and permanently installed carpeting.

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    Detached Structures

    Some policies extend coverage to detached structures on the property, like a detached garage, shed or fence. However, you might also need to purchase a separate "Other Structures" coverage with an additional premium.

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    Materials and Supplies

    Covers materials and supplies located on or adjacent to the residence premises if they are intended for construction, alteration or repair of the dwelling or other structures on the property.

For instance, if a tree falls on your home during a storm and causes significant damage to your roof, your policy would cover the repair costs, helping you restore your home. Coverage can also vary depending on specific situations and policy details, so make sure to consult with your insurance agent.

What Is Homeowners Insurance?

Homeowners insurance is a comprehensive policy designed to protect your home and belongings from a wide range of unforeseen events. This policy ensures that your property and financial well-being are safeguarded against diverse risks, offering peace of mind. Beyond dwelling coverage for the physical structure, homeowners insurance includes several other types of protection:

  • Personal Property Coverage: Personal property coverage protects the contents of your home, like furniture and electronics, against theft or damage.

  • Liability Protection: Liability coverage in homeowners insurance covers legal fees and damages if someone is injured on your property and you are found liable.

  • Additional Living Expenses (ALE): Also known as loss of use coverage, additional living expenses (ALE) coverage provides reimbursement for living costs if your home is uninhabitable due to covered damage.

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Homeowners insurance as a whole comprehensively shields against various perils, activating the protective measures of either hazard or personal property coverage. This coverage safeguards your home and belongings against a broad spectrum of risks. These perils include:

  • Natural disasters, such as hurricanes and earthquakes
  • Fire and smoke damage
  • Theft and vandalism
  • Water damage from plumbing, heating or cooling systems
  • Liability claims for injuries occurring on the property

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About Mark Fitzpatrick

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Mark Fitzpatrick has analyzed the property and casualty insurance market for over five years, conducting original research and creating personalized content for every kind of buyer. Currently, he leads P&C insurance content production at MoneyGeek. Fitzpatrick has been quoted in several insurance-related publications, including CNBC, NBC News and Mashable.

Fitzpatrick earned a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He is passionate about using his knowledge of economics and insurance to bring transparency around financial topics and help others feel confident in their money moves.