Hazard insurance and homeowner insurance are two types of property insurance that serve different purposes.
Hazard insurance, also known as property insurance, covers damage to your home and personal property from specific perils, such as fire, wind, hail, or theft. This type of insurance is usually required by mortgage lenders and is essential for protecting your investment in your home. It covers the physical structure of your home and any attached structures, such as a garage or porch, as well as personal belongings inside the home.
Homeowner insurance, on the other hand, is a broader form of insurance that includes hazard insurance, but also covers additional aspects of homeownership. Homeowner insurance typically includes liability coverage, which protects you from financial loss if someone is injured on your property and sues you. It also covers additional living expenses if your home is uninhabitable due to a covered loss, such as a fire. Homeowner insurance may also include additional coverage for specific situations, such as identity theft protection or coverage for valuable items like jewelry or artwork.
In summary, hazard insurance covers damage to your home and personal property from specific perils, while homeowner insurance includes hazard insurance along with additional coverage for liability and other potential risks associated with homeownership.