Home insurance and hazard insurance are two terms often used interchangeably, but they’re not the same. While they both provide coverage for damages to your property, there are essential differences between the two.
Here are the 3 main differences between homeowners insurance and hazard insurance:
- Scope: Homeowners insurance provides broader coverage for a wide range of events that could damage your property, while hazard insurance provides coverage for specific perils or hazards named in the policy.
- Liability: Homeowners insurance typically includes liability coverage, which can protect you from lawsuits if someone is injured on your property. Hazard insurance typically covers damage to the structure of your home, but it may not cover damage to personal property or liability claims unless called out specifically in the policy documents.
- Cost: Homeowners insurance is generally more expensive than hazard insurance because it provides broader coverage. The cost of homeowners insurance varies depending on several factors, including the value of your home, the deductible you choose, and the amount of coverage you need.
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