Les Masterson is a deputy editor and insurance analyst at Forbes Advisor. He has been a journalist, reporter, editor and content creator for more than 25 years. He has covered insurance for a decade, including auto, home, life and health. Before cove.
Les Masterson Deputy Editor, InsuranceLes Masterson is a deputy editor and insurance analyst at Forbes Advisor. He has been a journalist, reporter, editor and content creator for more than 25 years. He has covered insurance for a decade, including auto, home, life and health. Before cove.
Written By Les Masterson Deputy Editor, InsuranceLes Masterson is a deputy editor and insurance analyst at Forbes Advisor. He has been a journalist, reporter, editor and content creator for more than 25 years. He has covered insurance for a decade, including auto, home, life and health. Before cove.
Les Masterson Deputy Editor, InsuranceLes Masterson is a deputy editor and insurance analyst at Forbes Advisor. He has been a journalist, reporter, editor and content creator for more than 25 years. He has covered insurance for a decade, including auto, home, life and health. Before cove.
Deputy Editor, Insurance Jason Metz Lead Editor, InsuranceAs a former claims handler and fraud investigator, Jason Metz has worked on a multitude of complex and multifaceted claims. The insurance industry can be seemingly opaque, and Jason enjoys breaking down confusing terms and products to help others mak.
Jason Metz Lead Editor, InsuranceAs a former claims handler and fraud investigator, Jason Metz has worked on a multitude of complex and multifaceted claims. The insurance industry can be seemingly opaque, and Jason enjoys breaking down confusing terms and products to help others mak.
Jason Metz Lead Editor, InsuranceAs a former claims handler and fraud investigator, Jason Metz has worked on a multitude of complex and multifaceted claims. The insurance industry can be seemingly opaque, and Jason enjoys breaking down confusing terms and products to help others mak.
Jason Metz Lead Editor, InsuranceAs a former claims handler and fraud investigator, Jason Metz has worked on a multitude of complex and multifaceted claims. The insurance industry can be seemingly opaque, and Jason enjoys breaking down confusing terms and products to help others mak.
| Lead Editor, Insurance
Updated: Nov 21, 2023, 10:05am
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To qualify for a mortgage for a home, you’ll need hazard insurance, which is a part every best homeowners insurance policy. Hazard insurance covers the structure of the house. It’s important to keep in mind that this insurance, also called dwelling coverage, is a subsection of your homeowners insurance, and not a separate policy.
Here are 16 hazards (perils) commonly covered by hazard insurance:
If one of these problems damages your property, the hazard or dwelling portion of your policy will cover repair costs. In general, hazard insurance will cover only perils that are listed in the policy. But a standard homeowners policy, called an HO-3, will cover all problems that damage your house except ones that are specifically excluded.
Hazard insurance requirements can differ by lender and by location. For instance, while wind damage is usually covered by homeowners insurance, in some coastal areas it may be excluded from a home insurance policy. If your hazard insurance excludes windstorm damage or your lender requires it, you will have to buy a separate windstorm policy.
There are certain things that hazard insurance won’t cover, such as:
Personal property and liability are included, though, in a standard home insurance policy. Mold damage can be covered if it’s caused by a peril covered by the policy.
Floods and earthquakes are not covered by homeowners insurance. You can buy flood insurance from the National Flood Insurance Program or a private insurer. You can pay to add earthquake insurance as well.
You should get enough hazard insurance to cover the cost to rebuild your home. This is called a home’s replacement value. It is not the real estate market value of your home, or the price you paid for it. Your insurance agent can help you determine the amount of dwelling insurance you need based on local construction costs.
Hazard insurance is just one part of a homeowners insurance policy, and typically the cost isn’t broken out by coverage type. Forbes Advisor found a national average home insurance rate of $1,854 a year. That’s for a policy with $300,000 in dwelling coverage.
With hazard insurance you need to pay a deductible if you file a claim, which is the amount of money deducted from an insurance claims check. You’ll be able to find your deductible amount on the policy declarations page of your home insurance policy.
Your insurance costs will depend on the amount of coverage and deductible you choose, your claims history and the size and materials of your house. Other factors typically impacting the cost of home insurance are where you live and your credit.
Along with hazard insurance, these coverage types comprise a typical homeowners policy:
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Deputy Editor, InsuranceLes Masterson is a deputy editor and insurance analyst at Forbes Advisor. He has been a journalist, reporter, editor and content creator for more than 25 years. He has covered insurance for a decade, including auto, home, life and health. Before covering insurance, Les was a news editor and reporter for Patch and Community Newspaper Company and also covered health care, mortgages, credit cards and personal loans for multiple websites.
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