Buying a new home is a big investment. Whether it’s your primary home or a second home you plan to use as a rental property, most individuals take on a mortgage to cover the cost. Considering all mortgage lenders require homeowner’s insurance, wouldn’t it be nice to know what you’re getting out of your monthly payments?
Quite simply, your new home needs to be protected in case of unforeseen circumstances. A homeowner’s insurance policy offers security for you, your house and its contents. Along with personal property and liability coverage, this policy offers mortgage hazard insurance.
What Is Covered by My Hazard Insurance?
Hazard insurance protects your home if it suffers damage from natural disasters such as fire, hail or fallen trees. It also covers any damage resulting from theft or vandalism. The only natural occurrence not typically included in the policy is flooding.
Before issuing a loan, most mortgage lenders often require that you purchase hazard insurance, since it is the only part of the policy that focuses on the structure of your house. Should you and your home be impacted by any of the covered catastrophes, your insurance provider will help ensure the repair costs are covered.
To be sure you’re getting the best coverage for your home, review your insurance policy with your provider every couple of years to confirm any upgrades or renovations are included.