Hazard insurance, also known as dwelling coverage, is a component of a homeowner's insurance policy that provides protection against specific hazards or perils that may cause damage to a home. This type of insurance typically covers damage caused by natural disasters such as fire, lightning, windstorms, hail, explosions, riots, smoke, vandalism, and theft. It's important to note that hazard insurance does not cover all types of hazards, so it's essential to review the policy details to understand the specific coverage provided. Additionally, hazard insurance may not cover damage caused by floods or earthquakes, so homeowners may need to consider purchasing separate flood insurance or earthquake insurance policies to ensure comprehensive protection for their homes. When obtaining a mortgage, lenders often require homeowners to have hazard insurance to protect their investment in the property. Overall, hazard insurance plays a crucial role in safeguarding homeowners from financial losses due to unforeseen events that can damage their homes.