What is homeowner’s hazard insurance?

Homeowner’s hazard insurance compensates you for property loss or damage. Hazard insurance is required for all mortgages. The mortgage agreement requires you to insure the value of the property and improvements against any types of loss specified by the lender, which may include:

  • Fire
  • Earthquakes
  • Hazards included within the term “extended coverage”
  • Other hazards listed in your mortgage agreement

If your mortgage is for a condominium, you are also required to purchase an HO6 policy for condominium residents that protects “walls-in” items.