Hazard Insurance

Hazard insurance is the portion of a homeowners policy that covers physical damage to the structure from events like fire, wind, or hail.

What Hazard Insurance means

Lenders require it to protect their collateral and usually escrow the premiums. In Florida, wind and hurricane coverage drive premiums well above the national average.

Florida example

A Florida coastal homeowner may pay $4,000–$8,000 a year for hazard coverage, often with a separate hurricane deductible. Lenders confirm the policy is active before closing and renew it through escrow each year.

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