What Is Another Name for Homeowners Insurance?

In certain cases, homeowners insurance is referred to as "hazard insurance," "dwelling coverage," "HO-3 insurance," or "HO-5 insurance." These terms are used interchangeably to describe the same essential protection that safeguards a homeowner's property against various risks and liabilities. Understanding these alternative names can be helpful when researching and shopping for home insurance.

Depending on the region and context, homeowner insurance is known by various names and terms. Some common alternative names for homeowners insurance include:

• Hazard Insurance: This term emphasizes the protection against specific hazards or perils that homeowners insurance provides. It also refers to “dwelling coverage” and does not encompass the other coverages of home insurance, such as personal property coverage or liability coverage.
• Dwelling Coverage: This name highlights the primary focus of the policy, which is to protect the home's physical structure. However, this excludes personal property coverage and liability coverage, which are other types of home insurance coverage.
• HO-3 Insurance: HO-3 is a common homeowners insurance policy type, often referred to by its policy code.
• HO-5 Insurance: Similar to HO-3, HO-5 is another policy type offering broader coverage and is sometimes used interchangeably with homeowners insurance.

These alternative names are different ways of describing the same fundamental insurance coverage that helps homeowners protect their investments and possessions from unexpected events and liabilities.

There is a distinction between hazard insurance and home insurance. Hazard insurance is more narrowly focused on the dwelling coverage aspect of a policy. In contrast, homeowners insurance serves as a comprehensive umbrella, encompassing dwelling coverage, personal property protection, liability coverage and additional living expenses.

Hazard insurance is not just a smart choice; it's an essential safeguard for homeowners as it protects your most valuable asset, which is your home. It would help if you had it simply because knowing you have hazard insurance provides peace of mind, allowing you to focus on enjoying your home without worrying about unexpected disasters

When you purchase home insurance, hazard insurance is included by default. Here’s why it’s necessary:

Homeowners insurance protects you and your property from various risks and financial liabilities. There are several situations that might require one or all of your homeowners insurance coverages. Typically, homeowners insurance provides coverage for the following key aspects:

Imagine a scenario where a severe thunderstorm causes a tree to crash through your home's roof, causing substantial damage. In this situation, your dwelling coverage would cover the cost of repairing or rebuilding your damaged roof, and your personal property coverage would also help replace or repair the damaged belongings within your home, such as furniture and electronics, that were affected by the incident.

If, by chance, a guest was injured during the incident, your liability coverage would assist with their medical bills and any legal expenses if they decide to file a lawsuit. Additionally, if the damage is so severe that you can't live in your home during repairs, your loss of use coverage would cover the cost of temporary housing and other living expenses, ensuring you have a place to stay while your home is restored.

The cost of homeowners insurance can vary significantly based on multiple factors, with dwelling coverage or hazard insurance being a primary driver of expense. For instance, for a home with $100,000 in dwelling coverage, the average annual cost is $1,518, but this can change depending on location, property type and other variables.

Let's consider a home with a higher dwelling coverage value to put this into perspective. For a property with $750,000 in dwelling coverage, the average annual premium can be around $6,139 or more. Compare the costs for each dwelling coverage limits:

The average cost of home insurance may also vary based on different factors such as location, construction type, age of structure, deductibles and other considerations. Understanding how rates may fluctuate can help you make informed choices regarding your policy. For instance, it can also vary by company.

State Farm is the cheapest home insurance for $100,000 and $500,000 in dwelling coverage, offering $1,026 and $3,126 respectively. While Nationwide is the next affordable option for a lower dwelling coverage, Farmers and Allstate offer cheaper premiums for a higher dwelling coverage.

Examine the table below to see how company and dwelling coverage rates can change.

Understanding the other names for home insurance is essential when you’re looking for a policy. While it’s also known as hazard insurance, knowing the difference is the key to finding a policy for your needs. To help you learn about other names for homeowners insurance, take a look at our answers to some of the most frequently asked questions.