Home Insurance vs. Hazard Insurance

​You may have heard about home and hazard insurance, but you may wonder how they differ. They cover different policies, but they are related and can be combined to boost your policy's coverage.

While homeowners insurance may aid you from a lot of liabilities, damages, and calamities such as tornadoes, fires, storms, etc., hazard insurance may add to the coverage of home insurance by protecting against natural hazards, theft, and vandalism. Keep reading to understand more about home and hazard insurance policies and coverage.

Homeowners Insurance Coverage
Home insurance can be referred to as a "package policy" due to its comprehensive protection from losses, liabilities, or damage to property. When your house is damaged after being destroyed by unforeseen events and needs repair, home insurance may help you with your expenses.

1. Dwelling Coverages
   If your home is damaged, the policy under dwelling coverage may aid you with the fees of home reconstruction. The coverage limits to the physical structures attached to your home, such as flooring, walls, windows, etc.
   
   
2. Other Structures
   All of the detached components of your house, including fences, picture frames, and sheds, may be paid under other structure policies.
   
   
3. Personal Property Coverage
   Personal items destroyed by a calamity or stolen, such as hygiene kits, clothes, or jewelry, may be replaced by personal property coverage. 

Hazard Insurance Coverage
Hazard insurance is under homeowners insurance that may cover you in hail, theft, sleet, or severe disasters. Just like in dwelling and other structural coverage, hazard insurance may protect you financially when your house is destroyed. 

Here are two types of perils covered by hazard insurance.

Named-Peril Policy
Named peril has limited coverage. The policy may only protect your house in these certain circumstances:

• Explosion
• Volcanic Eruption
• Hail
• Electrical Current
• Theft
• Vandalism 
• Riot

Open-Peril Policy 
The open-peril policy offers a wide coverage that may protect you from all the risks, but there are some restrictions. The policy won't cover you during the following:

• Mold and fungus infestation
• Power failure
• Water damage

Conclusion
Although hazard insurance is included when you purchase home insurance, it is best to understand how they differ regarding their coverages and policy. Select homeowners insurance for your house that offers a variety of advantages.

At McClain Matthews Insurance, we do our best in making sure that our clients are well-protected with affordable and comprehensive policies. We make sure to go the extra mile to help you with your needs. To learn more about how we can help you, please contact our agency at (317) 298-7500 or Click Here to request a free quote. Topics and coverage discussed in this article are not guaranteed, consult with your agents to determine what your policy does and does not cover. We are more than happy to help!