In real estate, Hazard Insurance is a type of property insurance that protects against losses caused by events such as fire, certain natural disasters, vandalism, and other specified hazards. The exact coverage depends on the terms and exclusions outlined in the insurance policy.
Hazard insurance is commonly required by lenders as a condition of mortgage financing to protect their collateral. It helps ensure that funds are available to repair or rebuild the property if damage occurs, safeguarding both the property owner’s and lender’s financial interests.
